Coca-Cola (NYSE:KO) on Monday reported quarterly earnings that topped analysts’ expectations as consumers drank more of its namesake soda, Powerade and Costa coffee.
But CEO James Quincey says, despite the strong quarter, there are “storm clouds” on the horizon. The company largely weathered inflationary challenges during the first quarter and maintained its outlook.
Coke reported first-quarter net income attributable to shareholders of $2.78 billion, or 64 cents per share, up from $2.25 billion, or 52 cents per share, a year earlier.
Excluding items, the beverage giant earned 64 cents per share, beating the 58 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 16% to $10.5 billion, topping Wall Street’s expectations of $9.83 billion. Organic revenue, which strips out the impact of acquisitions and divestitures, climbed 18% in the quarter.
High demand and shopping trends pushed many food and drink companies to focus on bulk packaging, but smaller packaging has returned in recent months. Quincey says consumers won’t “swallow inflation endlessly.”
Coke’s unit case volume rose 8% during the quarter. The company posted double-digit volume growth in both its nutrition, juice, dairy and plant-based beverages segment and its hydration, sports, coffee and tea segment. The company’s sparkling soft drink unit saw its volume increase 7%, fueled by demand for its namesake soda and its zero-sugar version.
In early March, Coke paused operations in Russia, citing the Kremlin’s invasion of Ukraine.
KO opened Monday up $1.26, or 1.9%, to $66.51
