Coca-Cola Consolidated Reports Strong Q2 Performance Amid Shifting Consumer Behaviors
Coca-Cola Consolidated, Inc. (NASDAQ: COKE), the largest independent Coca-Cola bottler in the United States, posted robust financial results for the second quarter of 2023, signaling continued momentum despite an evolving consumer and retail landscape.
The company delivered net sales of $1.74 billion for Q2, marking a 9% increase compared to $1.60 billion in the prior-year period. This growth reflects both favorable pricing strategies and a modest increase in physical case volume, which rose by 3% year-over-year. Higher prices per case contributed to revenue gains, despite inflationary pressures impacting input costs across the FMCG sector.
Gross profit improved by 8% to $648 million, while income from operations grew 4% to $217 million. Although comparable operating income dipped slightly to $208 million versus $214 million last year, the margin pressure was largely driven by elevated distribution and labor-related expenses.
“Our teams have remained focused on serving customers effectively while navigating inflationary cost challenges,” said Dave Katz, President and COO. “We’re encouraged by our volume recovery and the resiliency of consumer demand across key beverage categories.”
The company noted strong performance across sparkling soft drinks, still beverages, and emerging better-for-you drink formats. The revenue boost was driven in part by single-serve package growth in both retail and foodservice channels, underlining a continued consumer preference for convenience and on-the-go formats.
Comparable diluted earnings per share for the second quarter were $12.57, a modest decline from $13.37 in the prior year, attributed in part to rising operating expenses. Net income remained strong at $117 million.
Looking ahead, Coca-Cola Consolidated reiterated its commitment to capital investment in automation and digital initiatives designed to streamline operations and strengthen its supply chain. The company continues to monitor economic pressures and shifting shopper behaviors, particularly in regional markets where input costs and labor dynamics show varied impacts.
This performance underscores the resilience of core beverage segments and highlights the importance of pricing agility, portfolio diversification, and operational efficiency for FMCG brands navigating margin sensitivity in 2023.