Coca-Cola Q1 results: Strong growth reported as consumers pay more
1 min read . Updated: 24 Apr 2023, 08:00 PM IST
PremiumOrganic revenue, which excludes the impact of currency shifts and acquisitions, increased by 12% in the quarter, above the 9.6% average analyst estimate. Adjusted earnings of 68 cents a share exceeded the estimated 65 cents.
Coca-Cola Co. reported first-quarter organic revenue growth that surpassed estimates as consumers absorbed higher costs for the company’s sodas, juices and energy drinks.
Organic revenue, which excludes the impact of currency shifts and acquisitions, increased by 12% in the quarter, above the 9.6% average analyst estimate. Adjusted earnings of 68 cents a share exceeded the estimated 65 cents.
“Our system alignment is stronger than ever, and our networked organization is allowing us to adapt as needed," Chief Executive Officer James Quincey said in a statement. “We are confident in our ability to deliver on our 2023 objectives."
The beverage company has seen its performance bolstered in recent years as pandemic restrictions fade away. Now, consumers are proving more willing to pay more for soft drinks at public venues such as restaurants, stadiums and concerts.
In North America, the average price across a mix of products grew by 11% even as concentrate sales rose just 1% and the key gauge of unit case volume gained 3%. The Atlanta-based company cited “continued investments in the marketplace" along with strength in away-from-home channels.
Coca-Cola maintained its forecast of full-year organic revenue growth in a range of 7% to 8%. Wall Street’s average estimate for the measure stands at 7.8%.
Revenue was $10.98 billion, compared with the $10.84 billion estimate.
The shares rose 1.4% at 7:13 a.m. in early New York trading. The stock was up 0.7% so far in 2023 through last week’s close, trailing the 7.7% gain of the S&P 500 Index.