Coca-Cola Company’s (KO) quarterly earnings exceeded estimates as consumers drank more of its namesake soda, Powerade, and Costa coffee. The beverage giant’s unit case volume increased 8% during the quarter, fueled by demand for drinks like Powerade and Coke Zero Sugar. Despite the suspension of its Russian business, the company reiterated its full-year outlook of revenue growth of 7% to 8% and comparable earnings per share growth of 5% to 6%. Coke is expecting a 4% headwind due to foreign currency, for the second quarter.
- Excluding items, the beverage giant earned 64 cents per share, beating the 58 cents per share expected by analysts.
- Revenue of $10.5 billion was reported versus $9.83 billion expected.
- Net income of $2.78 billion was reported an increase from $2.25 billion a year earlier.
- Net sales increased 16% to $10.5 billion, exceeding market expectations of $9.83 billion.
- Organic revenue climbed 18% in the quarter.
- Pricing and mix, which includes price increases across its portfolio, grew 7% in the quarter, helped by strategies like bottling its drinks in smaller packaging.
- The company posted double-digit volume growth in both its nutrition, juice, dairy, and plant-based beverages segment and its hydration, sports, coffee, and tea segment.
Pricing and mix, which includes price increases across its portfolio, rose 7% in the quarter, helped by strategies like bottling its drinks in smaller packaging. As inflation puts pressure on Coke’s profit margins and shoppers’ wallets, the company is reportedly expanding its lineup of single-serving offerings at “affordable” prices.
Dow 30 Component, The Coca-Cola Company (KO), is the largest total beverage company in the world. It offers 500 plus brands in over 200 countries and is committed to reducing sugar in its drinks and providing new and diverse drinks to people everywhere. To learn more about The Coca-Cola Company (KO) and to continue to track its progress please visit the Vista Partners Coca-Cola Company Coverage Page.