A pedestrian passes a Coca-Cola delivery truck in Mexico City, Mexico, on Wednesday, Jan. 25, 2023.
Jeoffrey Guillemard | Bloomberg | Getty Images
Coca-Cola on Monday reported quarterly earnings and revenue that topped analysts’ expectations, fueled by price hikes and higher demand for its drinks.
Shares of the company rose 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 68 cents adjusted vs. 64 cents expected
- Revenue: $10.96 billion adjusted vs. $10.8 billion expected
Coke reported first-quarter net income attributable to shareholders of $3.11 billion, or 72 cents per share, up from $2.78 billion, or 64 cents per share, a year earlier.
Excluding restructuring charges, certain tax matters and other items, the beverage giant earned 68 cents per share.
Net sales rose 5% to $10.98 billion. Organic revenue, which strips out the impact of acquisitions and divestitures, climbed 12% in the quarter, driven largely by higher prices on Coke’s drinks.
Like many companies, Coke has been hiking prices to mitigate the impact of inflation. But the higher prices had a muted effect on demand for its beverages.
The company’s unit case volume, which excludes the impact of pricing and currency changes, grew 3% in the quarter. Volume in North America was flat, while in Europe, the Middle East and Africa it fell 3%. But demand was strong in Latin America and the Asia Pacific region.
Coke reported 3% volume growth for its sparkling soft drinks unit. Its namesake soda also reported 3% volume growth, while Coke Zero Sugar’s volume rose 8%.
Coke’s water, sports, coffee and tea division saw volume growth of 4%, fueled by strong demand for its coffee and bottled water. Coke’s coffee business reported its volume increased 9%, while its water division’s volume rose 5%.
The earthquake in Turkey hurt demand for its tea, which saw volume shrink 3% in the quarter. Volume for its sports…
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