On November 1, 2023, Coca-Cola Consolidated Inc (COKE, Financial) released its earnings report for the third quarter and first nine months of 2023. The company reported a 5% increase in net sales for Q3 2023 compared to Q3 2022. Income from operations for Q3 2023 was $216 million, a 14% increase from Q3 2022. For the first nine months of 2023, income from operations was $656 million, a 40% increase from the same period in 2022. The operating margin for the first nine months of 2023 was 13.1%, an increase of 300 basis points from the same period in 2022.
Financial Highlights
Net sales for Q3 2023 were $1.71 billion, a 5% increase from Q3 2022. For the first nine months of 2023, net sales increased by 9% to $5.02 billion. Standard physical case volume declined by 1.4% in Q3 2023 and decreased by 2.8% in the first nine months of 2023. Gross profit for Q3 2023 was $661.6 million, a 7% increase from Q3 2022. For the first nine months of 2023, gross profit was $1.96 billion, a 17% increase from the same period in 2022.
Company's Performance
According to J. Frank Harrison, III, Chairman and Chief Executive Officer of Coca-Cola Consolidated Inc (COKE, Financial), the company's strong performance is due to the benefits of their strong brands, disciplined pricing, and overall operating expense management. He also mentioned that the company's cash on hand exceeded its outstanding debt balance, making it net debt-free for the first time in almost 40 years.
Future Outlook
Despite the positive results, the company expects sales growth to slow down in the fourth quarter as they fully cycle 2022 price increases. However, they remain optimistic about upcoming brand activity and a robust marketing calendar. They also plan to introduce Bang Energy into their portfolio, building on their success in the Energy category.
Financial Tables
The financial tables provided in the earnings report show a detailed breakdown of the company's performance. The tables include key results for the third quarter and first nine months of 2023, beverage sales for the same periods, and a review of the third quarter and first nine months of 2023. The tables also provide a comparison of the company's performance in 2023 to its performance in 2022.
Explore the complete 8-K earnings release (here) from Coca-Cola Consolidated Inc for further details.
