- Coca-Cola’s fourth-quarter fiscal 2022 revenue beat analyst estimates.
- Earnings, meanwhile, were in line with forecasts.
- In volume of Coca-Cola products sold, subtracting inflation and the impact of foreign exchange, it fell 1 percent. Prices rose 12 percent.
The economic crisis derived from the increase in raw materials after the end of the pandemic and the conflict in Ukraine impacted all companies that focus on mass consumption products.
Coca-Cola is one of them. The Atlanta brand must have raise prices in all countries, including Mexico, Argentina, Colombia and the rest of Latin America, to offset the increase in their inputs.
This decision was closely scrutinized within the company as, at the same time, the world’s largest beverage company and one of the world’s most iconic brands faces another challenge: the consumer trend towards healthier products.
The problem is that investing in a healthy change while increasing prices was not the most advisable thing to do.
In recent years, Coca-Cola has been developing and marketing products with less sugar or no sugar at all. This includes the advertising revitalization of its calorie-free soft drink, Coke Zero, as well as the failed launch of Coca Cola Life (sweetened with stevia).
Coca-Cola, income and prices
In this context, it is necessary to analyze Coca-Cola’s latest financial results, which, taking into account the aforementioned problems, are encouraging.
That’s right, according to the clipping published this Tuesday, February 14Coca-Cola’s fourth-quarter fiscal 2022 revenue beat analyst estimates. Earnings, meanwhile, were in line with forecasts.
In quantity of products of Coca-Cola sold, subtracting for inflation and the impact of foreign exchange, the brand fell 1 percent.
This means that, Due to the higher prices, the brand was affected by the demand for its products. This was especially true of the more expensive ones, such as Simply Orange Juice and Fairlife Milk.
The fourth-quarter financial result was welcomed by Wall Street, as Coca-Cola shares rose in the early hours of trading.
As reported, earnings per share increased 45 cents and total revenue was $10.13 billion. Likewise, the soft drink giant reported net income in the fourth quarter of 2,040 million dollars.
Disregarding the cost of leaving Russia, Cola-Cola investors earned 45 cents per share.
In percentage, Net sales increased 7 percent in the quarter driven by 12 percent growth in prices.
The number of products sold was flat in North America and fell 5 percent in Europe, the Middle East and Africa.
Two interesting facts: Coca-Cola Zero Sugar volume increased 9 percentand the coffee business had a rise of 11 percent thanks to the Costa brand.
The weakest point was the segment of juices, value-added dairy and plant-based beverages Coca-Cola, whose volume fell 7 percent in the quarter.
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