coca cola On Monday, it reported quarterly earnings that beat analysts’ expectations as consumers drank more sodas of the same name, Powerade and Costa Coffee.
But CEO James Quincey told CNBC Sarah Eisen That despite the strength of the quarter, there is a “storm clouds” looming. The company largely weathered inflationary challenges during the first quarter and maintained its forecasts.
Here’s what the company reported compared to what Wall Street was expecting, based on an analyst survey by Refinitiv:
- Earnings per share: 64 cents adjusted to 58 cents expected
- Revenue: $10.5 billion vs. $9.83 billion forecast
The Coca-Cola Company reported first-quarter net income for shareholders of $2.78 billion, or 64 cents per share, up from $2.25 billion, or 52 cents per share, a year ago.
Excluding items, the beverage giant earned 64 cents per share, exceeding the 58 cents per share analysts polled by Refinitiv had expected.
Net sales It rose 16% to $10.5 billion, beating Wall Street expectations of $9.83 billion. Organic revenue, which removes the impact of acquisitions and divestitures, increased 18% in the first quarter.
Prices and mixes grew 7% in the quarter, helped by strategies such as packing its drinks into smaller packages. As inflation pressures Coca-Cola’s profit margins and shoppers’ wallets, the company said it is expanding its assortment of single-service offerings at “affordable” prices.
High demand and shopping trends have prompted many food and beverage companies to focus on wholesale packaging, but smaller packages have returned in recent months. Quincy told CNBC that consumers “are not going to swallow inflation indefinitely.”
Coke unit case volume was up 8% during the quarter. The company recorded double-digit growth in the Nutrition & Juice, Dairy & Plant Beverage segments, and the Water & Sports & Coffee & Tea segments. The company’s fizzy soft drink unit saw its volume increase 7%, driven by demand for its namesake soda and its sugar-free version.
In early March, Coca-Cola halted its operations in Russia, citing the Kremlin’s invasion of Ukraine. The company said Monday that the decision is expected to reduce unit case size by 1% and revenue and operating income by 1% to 2%. Coca-Cola also estimates that the decision will weaken its comparative earnings by 4 cents per share.
Despite suspending its business in Russia, the company reiterated its full-year forecast for revenue growth of 7% to 8% and comparable earnings per share growth of 5% to 6%. For the second quarter, Coca-Cola expects headwinds of 4% due to foreign exchange.
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