Coca-Cola Raises Outlook After Double-Digit Earnings Increase

Global beverage giant sees increased 2023 profit and revenue on higher prices, as global case volume stays flat

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Terry Lane
Terry Lane
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Terry has 25 years experience in journalism and communications, reporting on a range of topics that include personal finance, telecommunications, Congress, government regulations, and criminal justice. He has also worked on technology, energy, and environmental policy issues as a congressional press secretary and owned and published a local community newspaper in North Carolina.
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Published July 26, 2023
Rows of Coca-Cola bottles in a store

Justin Sullivan / Getty Images

Buoyed by continued strong demand, Coca-Cola (KO) on Wednesday raised its projections for full-year 2023 profit and revenue after the beverage maker reported a double-digit earnings increase for the second quarter.

Key Takeaways

  • Coca-Cola reported a 6% increase in net revenue and an 11% gain in earnings per share (EPS) to 78 cents for the second quarter.
  • Global unit case volume for Coca-Cola was even, as a 1% U.S. decline was partly offset by growth in Mexico.
  • Coca-Cola's organic revenue rose by 11%, due to some degree to price increases by the beverage maker.

In its second-quarter 2023 results, Coca-Cola posted improved net revenue, up 6% year-over-year (YOY) to $12 billion, while its earnings per share (EPS) increased 11% from the prior-year quarter to 78 cents. Due partly to price increases, the company also reported an increase of 11% in organic revenue, which removes the revenue data associated with acquisitions or divestitures.

Free cash flow was $4 billion year-to-date, a decline of $45 million versus the first half of 2022, while the quarterly operating margin slipped to 20.1% from 20.7% in the 2022 second quarter. 

“I am encouraged that our all-weather strategy, working together with our bottling partners, has delivered strong second-quarter results,” CEO James Quincey said in a release. 

The Atlanta-based company raised its guidance for the year, now expecting to deliver revenue growth of 8% to 9%, up from its prior projection of 7% to 8%. Coca-Cola also projects its earnings to increase 5% to 6% from the $2.48 a share it delivered in 2022, after previously forecasting an uptick of 4% to 5%.  

Global Case Volume Even, Offsetting US Decline with Mexico Growth


The soft-drink maker reported that its global unit case volume was even with its 2022 second-quarter performance. Unit case volume is a key metric in the beverage industry, measuring the total volume of drinks sold while taking out the effect that changes in currency rates and prices can have on revenue. 

In North America, a 1% decline in the U.S. was partly offset by growth in Mexico. Coca-Cola was also able to move past its suspension of business in Russia in 2022, helped by improved sales in India and Brazil. 

The earnings report showed that while sales of sparkling soft drinks were flat, with the trademark Coca-Cola brand declining in Europe, case volumes for Coca-Cola Zero Sugar increased 5% in North America and Latin America. 

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  1. Coca-Cola Co. "Coca-Cola Reports Second Quarter 2023 Results and Raises Full-Year Guidance."

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