On Monday, Coca-Cola released quarterly earnings and sales that above analysts’ estimates thanks to price increases and increased demand for its beverages.
Coke’s net income for the first quarter was $3.11 billion, or 72 cents per share, up from $2.78 billion, or 64 cents per share, in the same period last year.
The beverage giant earned 68 cents a share after subtracting restructuring costs, some tax-related issues, and other items. Up 5% to $10.98 billion, net sales. Increased pricing for Coke’s beverages were a major factor in the organic revenue growth of 12% in the quarter, which excludes the effects of acquisitions and divestitures.
The company’s unit case volume increased by 3% in the third quarter, excluding the effects of price and currency fluctuations. In contrast to Europe, the Middle East, and Africa, volume in North America decreased by 3%. However, the Asia-Pacific area and Latin America had high demand.
The volume of Coke’s effervescent soft drink unit increased by 3%. Name-brand soda had a 3% increase in volume while Coke Zero Sugar saw an 8% increase.
Strong demand for the company’s coffee and bottled water drove a 4% increase in volume for its water, sports, coffee, and tea segment.
The volume of Coke’s coffee business climbed by 9%, while the volume of its water division increased by 5%. Coke’s juice, dairy, and plant-based drinks segment had flat volume. Bright areas, such as good sales for its Fairlife dairy brand in the United States, were countered by the suspension of its Russian company.
The business updated its earlier 2023 outlook. For 2023, it forecasts comparable earnings per share growth of 4% to 5% and organic sales growth of 7% to 8%.