Coca-Cola has higher quarterly sales as demand increases

Coca Cola Co.

COW -1.45%

recorded higher sales for the most recent quarter as demand stopped amid price increases, helping the beverage giant offset rising input costs.

Despite the stronger-than-expected results, Coke stuck to its full-year earnings guidance, which includes expectations that increases in commodity costs will be a mid-digit percentage headwind to the price of goods sold.

Coke’s organic revenue, which eliminates currency fluctuations as well as acquisitions or divestitures, rose 18% in the quarter ending April 1, driven by a 7% increase from price increases and mix of products sold.

The cost of goods sold increased by 17% to DKK 4.09 billion. Still, Coke’s operating revenue rose 25% to $ 3.41 billion from a year earlier.

In recent quarters, Cola and rival PepsiCo Inc.,

which reports results for the first quarter on Tuesday, has faced rising commodity prices, including the sugar in their beverages, the aluminum used to make their cans and the cost of moving products around the world.

At the same time, sales have remained strong as Coke’s business selling beverages and concentrates to stadiums, cinemas and restaurants rises as more consumers become confident of going out as pandemic restrictions ease.

Coke also said that its suspension of business in Russia as a result of the country’s invasion of Ukraine will hurt adjusted earnings for the full year by 4 cents per share. The move will also have an impact of 1% on unit case volume as well as an impact of 1% to 2% on sales and operating income for the year.

Coke shares rose slightly in pre-market trading after trading down first.

Cola and PepsiCo have recently renewed their product portfolios to keep pace with changing consumer tastes. In November, Coke entered into a $ 5.6 billion deal to take full control of BodyArmor, a sports drink brand that has grown sales faster than Coke’s soda business. Also last year, PepsiCo closed on sales of its Tropicana juice store, which had had slower sales than other devices.

Overall for the quarter, Coke had a share attributable to shareholders of $ 2.78 billion, compared to $ 2.25 billion a year earlier. Earnings were 64 cents per. share against 52 cents pr. shares. Analysts surveyed by FactSet expected earnings of 58 cents per share.

Sales rose 16% to $ 10.49 billion. Analysts surveyed by FactSet were looking for $ 9.83 billion.

Write to Will Feuer at will.feuer@wsj.com

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