A Coca-Cola building in Zagreb, Croatia, on November 8, 2023.
Denis Lovrovich | AFP | Getty Images
Coca Cola Quarterly earnings and revenue reported Tuesday beat analysts’ expectations.
The beverage giant also raised its full-year organic revenue forecast.
The company’s shares fell less than 1% in premarket trading.
The company’s report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: 72 cents adjusted, 70 cents expected
- Revenue: $11.30 billion, $11.01 billion expected
Coca-Cola reported first-quarter net income attributable to the company of $3.18 billion, or 74 cents a share, up from $3.11 billion, or 72 cents a share, in the same period last year.
Excluding items, the beverage giant earned 72 cents per share.
net sales grew 3% to $11.3 billion. Organic sales, which exclude the impact of acquisitions, divestitures and foreign exchange, grew 11% in the quarter.
Coca-Cola reported that its global unit case sales rose 1%, but its North American sales were flat this quarter. This metric excludes pricing and foreign currencies.
Coca-Cola’s sparkling soft drinks unit, which includes its namesake soda, reported a 2% sales increase.
Sales in the company’s juice, dairy and plant-based beverage divisions rose 2% in the quarter, driven by demand in North America.
Only Coca-Cola’s water, sports, coffee and tea divisions posted sales declines. Sales in the segment fell 2% in the quarter as demand for bottled water, sports drinks and coffee all weakened.
Coca-Cola’s overall price is up 13% compared with the same period last year, but about half of that comes from hyperinflation in some markets, such as Argentina.
Coca-Cola now expects full-year organic revenue to grow 8% to 9%, higher than its previous forecast of 6% to 7%. The company said it expected prices to rise in some markets experiencing “significant inflation,” which led in part to its new outlook.
Coca-Cola reiterated its forecast for full-year comparable profit growth of 4% to 5%.
The company expects second-quarter comparable revenue to include a 6% currency headwind and a 5% to 6% hit from acquisitions, divestitures and structural changes. Currency fluctuations are also expected to create an 8% to 9% headwind to its comparable earnings per share.
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