The following presentation includes certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule which reconciles our results as reported under Generally Accepted Accounting Principles and the non-GAAP financial measures included in the following presentation is attached as an appendix hereto.
Q1 2022 MARGIN ANALYSIS
CONSOLIDATED GROSS MARGIN
KEY TAKEAWAYS
Operating segment mix tailwind of ~20bps driven by relative underperformance in our lower margin, finished goods BIG segment versus our geographic operating segments.
• Items impacting comparability primarily relate to economic hedging activities.
58.5%
61.1%
~(60bps)
~50bps
~(30bps)
60.6%
~(110bps)
~130bps
61.0%
• Underlying gross margin expanded by ~50 bps driven by pricing initiatives and favorable channel and package mix, along with a benefit from timing of concentrate shipments.
57.4%
1Q21 GAAPItems Impacting
1Q21 ComparableComparability (Non-GAAP)Underlying
~(90bps)
CurrencyAcquisitions/
59.7%
1Q22
Divestitures/ ComparableStructuralItems Impacting
(Non-GAAP) Comparability
56.8%
• The acquisition headwind was due to the acquisition of the BODYARMOR finished goods business.
Q1 2022 MARGIN ANALYSIS
CONSOLIDATED OPERATING MARGIN
~170bps
~(40bps)
1Q21 GAAP
KEY TAKEAWAYS
• Items impacting comparability primarily relate to economic hedging activities.
• Underlying operating margin expansion of ~170 bps was primarily driven by strong topline growth, partially offset by an increase in marketing investments versus the prior year.
• The acquisition headwind was due to the acquisition of the BODYARMOR finished goods business.
APPENDIX
RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures
Comparable Currency Neutral Gross Margin (Non-GAAP) Impact of Acquisitions, Divestitures and Structural Changes on Comparable Currency Neutral Gross Margin (Non-GAAP) Underlying Gross Margin (Non-GAAP)
Three Months Ended
April 1, 2022
Three Months Ended
April 2, 2021
Basis Point Growth (Decline)
61.01% 1.31% 59.70% (0.31%) 60.01%
(1.07%) 61.08%
61.14% 0.57% 60.57% 0.00% 60.57% 0.00% 60.57%
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The Coca-Cola Company published this content on 18 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2022 16:29:05 UTC.
The Coca-Cola Company is the world's leader in the production and marketing of non-alcoholic beverages. Net sales break down by activity as follows:
- sale of beverage concentrates and syrups (56%);
- bottling and sale of beverages (44%): sodas, fruit juices, tea-based beverages, water, etc. marketed under the following brands: Coca-Cola, Diet Coke, Fanta, Fresca, Schweppes Sprite, Thums Up, Aquarius, Ciel, Dasani, AdeS, Del Valle, fairlife, innocent, Minute Maid, etc.
At the end of 2022, the group had over 133 production sites worldwide.
64.2% of net sales are abroad.
THE COCA-COLA COMPANY 
