A Coca-Cola building in Zagreb, Croatia, Nov. 8, 2023.
Denis Lovrovic | AFP | Getty Images
Coca-Cola on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations.
The beverage giant also raised its full-year outlook for organic revenue.
Shares of the company fell less than 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 72 cents adjusted vs. 70 cents expected
- Revenue: $11.30 billion vs. $11.01 billion expected
Coke reported first-quarter net income attributable to the company of $3.18 billion, or 74 cents per share, up from $3.11 billion, or 72 cents per share, a year earlier.
Excluding items, the beverage giant earned 72 cents per share.
Net sales rose 3% to $11.30 billion. Organic sales, which strips out the impact of acquisitions, divestitures and foreign exchange, climbed 11% in the quarter.
Coke reported that its global unit case volume increased 1%, but its North American volume was flat for the quarter. The metric excludes pricing and foreign currency.
Coke’s sparkling soft drinks division, which includes its namesake soda, reported volume growth of 2%.
The company’s juice, dairy and plant-based drinks segment saw volume grow 2% in the quarter, fueled by demand in North America.
Only Coke’s water, sports, coffee and tea division reported declining volume. The segment’s volume fell 2% in the quarter as bottled water, sports drinks and coffee all saw demand weaken.
Coke’s overall prices were up 13% compared with the year-ago period, but about half of that came from hyperinflation in certain markets, like Argentina.
For the full year, Coke is now expecting organic revenue growth of 8% to 9%, up from its prior range of 6% to 7%. The company said it anticipates price hikes in certain markets experiencing “intense inflation,” leading in part to its new outlook.
Coke reiterated its outlook for full-year comparable earnings growth of 4% to 5%.
In the second quarter, the company expects that its comparable revenue will include a 6% currency headwind and a 5% to 6% hit from acquisitions, divestitures and structural changes. Currency fluctuations are also expected to pose a 8% to 9% headwind to its comparable earnings per share.