On February 10, Coca-Cola Released its financial results for the fourth quarter and full year of 2021. Compared with 2019 before the epidemic, global single-box sales have increased in each quarter of 2021, and single-box sales in 2021 have also fully caught up with 2019 levels.
Earnings reports showed fourth-quarter revenue of $9.46 billion, up 10% year-over-year, exceeding market expectations of $8.94 billion; earnings per share of $0.45, higher than market expectations of $0.41; global single-carton sales increased 9% year-over-year, and single-box sales in Asia Pacific increased by 11% year-on-year, mainly due to strong growth in China, India and the Philippines. It is worth noting that for the first time in the fourth quarter, sales outside the home exceeded the same period in 2019, while sales in the home consumption channel still maintained a strong growth momentum.
For the full year 2021, the company's revenue was $38.66 billion, up 17% year-over-year, exceeding market expectations of $38.08 billion; operating profit was $10.31 billion, up 15% year-over-year; earnings per share were $2.32, higher than market expectations of $2.29; and global single-box sales increased 8% year-over-year.
"While 2021 remains fraught with uncertainties, the Coca-Cola system performed well during the year, showing strong resilience and a high degree of flexibility." James Quincey, Chairman of the Board and Chief Executive Officer of The Coca-Cola Company, said, "Guided by our core strategy, we have truly achieved a 'strong rise.'" We have reason to believe that the progress made in the strategic transformation has made Coca-Cola a more agile and agile full-category beverage company. The current market environment is still full of changes, and we hope to build on the good momentum of 2021 to continue to drive business growth and maximize returns." ”
Globally, Coca-Cola's share of the non-alcoholic ready-to-drink beverage market increased in the fourth quarter and throughout 2021, with both home and out-of-home channels increasing. At the same time, the company's share of value in the non-ready-to-drink beverage market, including those of home and out-of-home channels, exceeded 2019 levels.
In the financial report, Coca-Cola issued a full-year 2022 performance guide, and it is expected that the annual organic revenue growth rate in 2022 will be in the range of 7%-8%, and earnings per share will increase by 5%-6% compared with $2.32 in 2021.
In 2021, Coca-Cola maintained a steady and upward business performance in a challenging market environment, demonstrating strong resilience and business resilience. Behind this is the consistent long-termism of Coca-Cola in various markets, and continues to cultivate internal strengths in brand building, supply chain digital transformation and sustainable development, laying a solid foundation for the long-term and stable development of the business.
Coca-Cola's fourth quarter and full year 2021 results exceed expectations, achieving a "strong rise"
Long-term focus on brand building to promote the "all-category beverage" strategy
Coca-Cola focuses on the long-term goal of "all-category beverage company", on the one hand, it continuously strengthens the competitiveness of classic brands, and on the other hand, it brings consumers fresh categories and beverage choices.
The flagship brand [Coca-Cola] remains strong in the fierce competition in China's beverage market. In the Lunar New Year of the Tiger, [Coca-Cola] launched the Spring Festival Limited Edition Chinese Zodiac Tiger Year Jar for the first time in China, integrating traditional Chinese elements such as New Year paintings and cut-and-paste art, and launched a series of creative marketing activities such as animated films and immersive interactive games in the Year of the Tiger, constantly strengthening [Coca-Cola] as a symbol of joy and reunion, deeply connecting local consumers, enhancing emotional resonance with local consumers, and further consolidating the brand's market competitiveness.
This New Year marketing is the successful landing of [Coca-Cola's] new brand concept in the Chinese market. At the end of September 2021, [Coca-Cola] released a new brand concept "Real Magic" and launched a new form of its classic logo , the "Hug" logo, to ensure that the brand spirit keeps pace with the times and reflects the profound insight into the rapid changes in local society and the global environment.
【Coca-Cola】Create a series of Spring Festival marketing activities in the Year of the Tiger to interact with consumers with multiple touchpoints to strengthen brand competitiveness
While consolidating the competitiveness of classic brands, Coca-Cola China continues to promote the "all-category beverage" strategy, on the one hand, to optimize the existing brand and product portfolio, on the other hand, there is important progress in category expansion, and in 2021, it will break through into the low-alcohol and low-temperature milk market, showing good product innovation and business development capabilities.
Increase the supply chain, upgrade production capacity and warehousing
At the same time of brand building and product innovation, Coca-Cola China has joined hands with two major bottling partners, COFCO Coca-Cola and Swire Coca-Cola, to promote the digital transformation of supply chain systems, achieve quality and efficiency of production capacity and intelligent management of warehousing.
In the fourth quarter, COFCO Coca-Cola officially launched the "Central Planning Center", which aims to meet the world-class demand level, optimize system investment and improve asset utilization, optimize end-to-end supply costs, become best practices and innovation exploration as the core values, carry out overall planning from the five aspects of architecture, personnel, processes, systems and performance, and coordinate end-to-end supply chain planning from the company-wide level to meet customer needs with the best service, highest efficiency and best cost.
In 2021, COFCO Coca-Cola's "Cola Go" platform has realized the digitization of the whole process of orders, which is customer-centric and improves the construction of the closed-loop ecosystem of "COFCO Coca-Cola-Partner Customer-End Customer-Consumer". Through the "Coke Go" project, the company opened up online and offline and self-selling machine equipment for the first time during the year, upgraded the traditional marketing methods, improved cofranco Coca-Cola's ability to reach consumers, and further promoted the digital transformation of enterprises.
At the beginning of the new year in 2022, Swire Coca-Cola announced that it will invest in the expansion of a new production base in Guangdong, with a plan to invest 1.25 billion yuan to build an intelligent and green production base including 12 beverage production lines, three-dimensional warehouses and supporting facilities. The investment set a new record for Swire Coca-Cola's single investment. Previously, the record was maintained by the Zhengzhou Swire Coca-Cola Expansion and Reconstruction Project. Just last October, the groundbreaking ceremony of the Zhengzhou Swire Coca-Cola Expansion and Reconstruction Project was officially held in Zhengzhou, Henan Province. The total investment of the project is not less than 900 million yuan, and the maximum annual production capacity of the new plant after completion will reach 1 million tons.
In addition, Swire Coca-Cola's warehouse expansion project at its xiamen plant in Fujian Province was officially completed in January this year, expanding the floor area of approximately 4,770 square meters on the basis of the old warehouse, adding approximately 5,300 new storage plates, approximately 848,000 cases of beverages, and a maximum daily throughput of approximately 7,000 plates of products in the warehouse, resulting in the expansion of the products in storage.
Swire Coca-Cola announces investment in the expansion of a new production site in Guangdong (left) and the official completion of a warehouse expansion project at its Xiamen plant (right) to meet the growing market demand
Create a sustainable development model and contribute to the sustainable Winter Olympics
As a partner of the Olympic Games for nearly a century, Coca-Cola has continued to support the 2022 Winter Olympics and Paralympic Winter Games. In addition to bringing a variety of beverage options to this Winter Olympics, Coca-Cola China will also bring the company's sustainable packaging experience of "no waste in the world" to the Winter Olympic Games, helping the vision of "sustainable and future-
In the fourth quarter, Coca-Cola China provided more than 4,000 sets of workwear suits made of rPET (recycled beverage bottle material) to the waste removal teams at all venues of the Beijing 2022 Winter Olympics, which are both functional and design-oriented, and reflect the concept of sustainability in all aspects. In terms of design, Coca-Cola China cleverly integrates the "hui" character element into work clothes, echoing the "recycle me" sustainable packaging logo on the Coca-Cola packaging bottle, so that the waste removal team wearing overalls can become the promotion ambassador of the concept of sustainable development, encouraging more people to recognize the value of beverage bottle recycling.
Coca-Cola China provides rPET overalls for all Winter Olympic venues' waste removal teams, which combine aesthetics, functionality and environmental protection
In addition, Coca-Cola China also designed and provided nearly 400 beverage bottle recycling barrels using rPETG (beverage bottle recycling material) for the Winter Olympics - "Bottles and Bottles and Cans Barrels", as well as more than 10 "No Waste in the World" interactive devices, through multiple contacts and creative forms to enhance the public's awareness of beverage bottle recycling.
Coca-Cola China designs and supplies rPETG beverage bottle recycling bins (left) and "No Waste Under The World" interactive installation (right) for the Beijing Winter Olympics
The design and display of the Coca-Cola Leisure Center opened in the three Winter Olympic Villages also highlights the advocacy of the concept of sustainable packaging of "no waste in the world". Whether it is soft decoration, furniture and facilities, or the rainbow wall printed with the original intention of The Coca-Cola Company, rPET(G) (beverage bottle recycling material) is widely used, aiming to allow athletes and guests to enjoy a vibrant and comfortable leisure space while feeling the aesthetic charm of recycling beverage bottles.
Coca-Cola Leisure Center in the three Major Winter Olympic Villages, Coca-Cola China presents the circular aesthetics of beverage bottle regeneration through different forms
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