Coca-Cola on Tuesday reported quarterly revenue that beat analysts’ expectations, driven by higher prices on its drinks.
But those higher prices have hurt demand for Coke products like Simply Orange Juice and Fairlife Milk. Coke said its unit case volume, which strips out the impact of currency and price changes, fell 1% in its fourth quarter.
Shares of the company rose 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 45 cents adjusted vs. 45 cents expected
- Revenue: $10.13 billion vs. $10.02 billion expected
The beverage giant reported fourth-quarter net income attributable to the company of $2.03 billion, or 47 cents per share, down from $2.41 billion, or 56 cents per share, a year earlier.
Excluding an impairment charge tied its Russian business and other items, Coke earned 45 cents per share.
Net sales rose 7% to $10.13 billion, driven by 12% growth in pricing and a more expensive mix of drinks sold.
Unit case volume was flat in North America and slipped 5% in its Europe, Middle East and Africa segment. CEO James Quincey said last quarter that European consumers were changing their behavior in response to soaring inflation.
Looking to 2023, Coke is projecting comparable revenue growth of 3% to 5% and comparable earnings per share growth of 4% to 5%. Wall Street was forecasting revenue growth of 3.9% and earnings per share growth of 3% for the year.
Read the Coca-Cola earnings report here.