Coca-Cola sales surge offsetting rising costs, Russia exit
Sales at Coca-Cola surged 16% during the first quarter as crowds returned to movie theaters, music venues and sport stadiums, offsetting rising input costs for the company and the suspension of operations in Russia.
Coca-Cola was among the companies to pull the plug on Russian operations after the country invaded neighboring Ukraine. But on Monday, it stuck by earlier revenue growth projections of 7% to 8% and pershare growth of 5% to 6% for the year.
The Atlanta company posted net income of $2.78 billion, or 64 cents per share, topping Wall Street’s expectations for pershare earnings by 6 cents, according to a survey by Zacks Investment Research.
The world’s largest beverage maker posted revenue of $10.49 billion in the period, also exceeding industry analyst forecasts of $9.91 billion.
Sales of Coca-Cola Zero Sugar increased 14%, while sales of its namesake Coca-Cola soft drink rose 6%. Overall sales for the sparkling soft drink category climbed 7%.
Consumers continued to gravitate to healthier beverages, with sales of nutrition, juice, dairy and plant-based beverages up 12%. Sales of hydration, sports, coffee and tea grew 10%.
Global unit case volume increased 8%, while pricing and mix rose 7%. Coca-Cola said accelerated cost pressures and ongoing supply challenges are leading it to look for different and more affordable ways to get its products to consumers. This includes offering single-serve packages. (AP)