Coca-Cola Topped Analysts’ Estimates on Quarterly Earnings
Apr 25, 2022 By MarketDepth
Coca-Cola (NYSE: KO) topped analysts estimates quarterly earnings on Monday as costumers consumed more of its Coke beverage, powerade and Costa Coffee. The company’s shares ultimatley rose 16% during the quarter as people returned to public venues, movie theaters and sporting events.
Earnings 10% Above Analysts’ Estimates
The multinational beverage corporation reported earnings of USD0.64 a share, compared to the expected USD0.58 a share. Revenue amounted to USD10.5 Billion, higher than analysts anticipated USD9.83 Billion. Furthermore, organic revenue surged 18% within the quarter, eliminating the impact of acquisitions and divestitures.
Price Changes to Products
“Price/mix grew 11%, primarily driven by pricing actions in the marketplace, continued recovery in the fountain business and away-from-home channels, and strong growth in premium offerings,” Coke said in explaining the performance of its North America business, where operating profits in the business surged 33% from a year ago. “Price/mix growth included a benefit resulting from the timing of price increases in the prior year.”
Coca-Cola Zero Sales Increase
Moreover, sales of the company’s Coca-Cola Zero drink increased by 14%, though overall sales for the sparkling drink division rose 7%. Consumers continued to move towards healthier beverages as sales for juice, dairy and plant-based beverages were up 12%. Menahwile, sales of hydration, sports, coffee and tea, grew 10%.
Despite the company’s decision to halt its russian business, it continues to stand by it full-year outlook of revenue growth ranging from 7% to 8%.