Coca-Cola results exceed expectations on higher prices, stable demand

Coca-Cola Co (KO.N) beat quarterly revenue and profit expectations on Monday, helped by higher prices and a rebound in demand for its sodas at theaters and restaurants.

Consumer goods companies have raised prices in the face of soaring costs of ingredients like coffee and sugar, as well as a surge in labor and transportation expenses. But demand has been resilient as consumers coming out of pandemic curbs spend more.

Analysts and companies have warned that demand could slow as the Ukraine war and Indonesia’s ban on palm oil exports result in higher global food prices.

The company said suspension of its operations in Russia would impact its annual profit by 4 cents per share and annual net revenue by about 1 per cent to 2 per cent. However, it left its forecast for annual comparable earnings per share growth unchanged at 5 per cent to 6 per cent.

Net revenue rose 16 per cent to $10.5 billion in the first quarter. Analysts had expected revenue of $9.83 billion, according to Refinitiv data.

Net income attributable to Coca-Cola shareholders rose 24 per cent to $2.78 billion, or 64 cents per share, in the three months ended April 1. Analysts had expected a profit of 58 cents per share.