- Coca-Cola beats forecasts with strong quarterly earnings and revenue, driven by higher prices and growing demand.
- Coca-Cola shares are up nearly 2% in pre-opening trading on Wall Street.
- Growth in sales volumes in Latin America and Asia-Pacific, while sales of tea and sports drinks fall.
Coca Cola reported this Monday, April 24, quarterly earnings and revenues that far exceeded analysts’ forecasts. It was a great quarter for the Atlanta-based brand thanks to a strong price increase and a demand that grew in almost all its drinks.
In that framework, Coca-Cola shares rose nearly 2 percent in early pre-opening trading on Wall Street.
According to Coca-Cola’s financial report, earnings per share rose to 68 cents (64 cents expected).
Revenues, meanwhile, totaled 10.9 billion dollars, compared to the 10.79 billion expected by the market. This represents a growth of 5 percent in relation to the same quarter of 2022, when the war between Russia and Ukraine had not yet impacted.
Organic revenues, which are those that exclude the impact of acquisitions and divestments, grew 12 percent in the quarter, “largely driven by higher prices for Coca-Cola beverages,” it publishes. CNBC.
Coca-Cola profit, sales and revenue
As most companies that sell consumer products have done, Coca-Cola raised prices to mitigate the impact of inflation.
However, this increase had a moderate effect on the demand for its beverages, so profits grew.
Let’s talk sales volumes: Coca-Cola product deliveries grew 3 percent in the quarter.
In the United States and Canada, sales volumes remained stable, they fell in Europe, the Middle East and Africa (3 percent), but they grew very strongly in Latin America (from Mexico to Argentina) and in the Asia-Pacific region.
In relation to products, Coca-Cola reported a 3 percent increase in sales volumes from its soft drink unit.
The Coca-Cola beverage in particular reflected 3 percent volume growth, while Coke Zero Sugar volume grew 8 percent.
The brand’s water, sports, coffee and tea division posted volume growth of 4 percent, driven by high demand for coffee and bottled water.
Coca-Cola’s coffee business grew 9 percent in quantities sold and bottled water 5 percent.
Tea sales were affected by the earthquake in Türkiye.
Sales of sports drinks also fell, with brands such as Bodyarmor and Powerade.
The American company reiterated its forecasts for 2023: it expects revenue growth of between 3 and 5 percent and an increase in profits of between 4 and 5 percent.
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