Coca-Cola (NYSE:KO) on Thursday reported quarterly earnings and revenue that beat analysts’ expectations as consumers drank more of the company’s products away from home, topping pre-pandemic levels for the first time.
But the company issued a weaker-than-expected outlook, predicting that higher inflation would continue to weigh on its profits throughout 2022. Rival PepsiCo (NASDAQ:PEP) similarly warned investors about rising costs for packaging and transportation.
The beverage giant reported fourth-quarter net income of $2.41 billion, or 56 cents per share, up from $1.46 billion, or 34 cents per share, a year earlier.
Excluding items, Coke earned 45 cents per share, beating the 41 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 10% to $9.46 billion, topping expectations of $8.96 billion. The quarter’s revenue was hurt by six fewer days than the prior year and the timing of concentrate shipments, according to the company.
During the fourth quarter, Coke bought full control of Bodyarmor for $5.6 billion, helping the company gain market share in the sports drink category. Coke bottlers will distribute the drink in the U.S., while Bodyarmor will be managed as a separate business within Coke’s North American division.
For 2022, Coke is expecting comparable earnings per share growth of 5% to 6%, while Wall Street analysts were forecasting 6.1% growth. It expects higher commodity costs to hit earnings by mid-single digits. The company is also predicting organic revenue growth of 7% to 8% for the full year.
KO shares raced 98 cents, or $1.61, to $62.02.
