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OFFON

THE COCA-COLA COMPANY

(KO)
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Margin Analysis Schedule Q3 2021

10/27/2021 | 07:08am EST

Q3 2021 MARGIN ANALYSIS

October 27, 2021

RECONCILIATION TO U.S. GAAP FINANCIAL INFORMATION

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.

Q3 2021 MARGIN ANALYSIS

CONSOLIDATED GROSS MARGIN

KEY TAKEAWAYS

Items impacting comparability

primarily relate to economic

Operating segment mix tailwind of ~20bps is driven

hedging activities.

by relative underperformance in our lower margin,

finished goods BIG segment versus our geographic

operating segments.

Underlyinggross margin expanded

~120bps

~40bps

~0bps

61.1%

by ~120 bps driven by pricing

60.4%

initiatives, favorable channel and

59.9%

package mix where coronavirus-

~(70bps)

59.4%

related uncertainty is abating, and

~(40bps)

timing of shipments.

~160bps

3Q20 GAAP

Items

3Q20

Underlying

Currency

Acquisitions /

3Q21

Items

3Q21 GAAP

Impacting

Comparable

Divestitures /

Comparable

Impacting

Comparability (Non-GAAP)

Structural

(Non-GAAP) Comparability

Note: Numbers may not add due to rounding.

2

YTD 2021 MARGIN ANALYSIS

CONSOLIDATED GROSS MARGIN

Operating segment mix headwind of

~(10bps) is driven by relative outperformance

in our lower margin finished goods Global

Ventures segment versus our geographic

operating segments

~10bps

61.1%

~30bps

61.4%

~120bps

~10bps

59.6%

~10bps

59.7%

~140bps

YTD20 GAAP

Items

YTD20

Underlying

Currency

Acquisitions /

YTD21

Items

YTD21 GAAP

Impacting

Comparable

Divestitures /

Comparable

Impacting

Comparability (Non-GAAP)

Structural

(Non-GAAP) Comparability

KEY TAKEAWAYS

Items impacting comparabilityprimarily relate to economic hedging activities.

Underlyinggross margin expanded by ~120 bps driven by favorable channel and package mix where coronavirus-related uncertainty is abating, timing of shipments, and pricing initiatives.

The divestiture benefitto gross margin was due to the discontinuation of the finished goods business of Odwalla.

Note: Numbers may not add due to rounding.

3

Q3 2021 MARGIN ANALYSIS

CONSOLIDATED OPERATING MARGIN

KEY TAKEAWAYS

Items impacting comparability

primarily relate to productivity &

Operating segment mix headwind of ~(30bps)

reinvestment initiatives,

is driven by relative outperformance in our

transaction gains & losses, and

lower margin finished goods Global Ventures

strategic realignment.

segment versus our geographic operating

segments

Underlyingoperating margin

~380bps

30.4%

~0bps

compression of ~(80 bps) was

~40bps

30.0%

primarily driven by a significant

~(80bps)

28.9%

increase in marketing investments

versus the prior year, partially

~(110bps)

offset by strong topline growth.

26.6%

~(40bps)

3Q20 GAAP

Items

3Q20

Underlying

Currency

Acquisitions /

3Q21

Items

3Q21 GAAP

Impacting

Comparable

Divestitures /

Comparable

Impacting

Comparability (Non-GAAP)

Structural

(Non-GAAP) Comparability

Note: Numbers may not add due to rounding.

4

YTD 2021 MARGIN ANALYSIS

CONSOLIDATED OPERATING MARGIN

Operating segment mix headwind of

~(30bps) is driven by relative

outperformance in our lower margin finished

goods Global Ventures segment versus our

geographic operating segments

~310bps

30.4%

~40bps

~10bps

30.9%

~0bps

29.6%

~(130bps)

27.3%

~50bps

YTD20 GAAP

Items

YTD20

Underlying

Currency

Acquisitions /

YTD21

Items

YTD21 GAAP

Impacting

Comparable

Divestitures /

Comparable

Impacting

Comparability (Non-GAAP)

Structural

(Non-GAAP) Comparability

KEY TAKEAWAYS

Items impacting comparabilityprimarily relate to productivity & reinvestment initiatives, transaction gains & losses, and strategic realignment.

Underlyingoperating margin expanded by ~40 bps driven by favorable channel and package mix where coronavirus-related uncertainty is abating, partially offset by a significant increase in marketing investments versus the prior year.

The divestiturebenefit to operating margin was due to the discontinuation of the finished goods business of Odwalla.

Note: Numbers may not add due to rounding.

5

Disclaimer

The Coca-Cola Company published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2021 11:07:11 UTC.


© Publicnow 2021
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