Coca Cola on Tuesday raised its outlook for the full year after beating Wall Street expectations for its quarterly earnings and revenue.
The company also provided a look ahead to 2023, saying it expects inflation to continue to drive up spending and commodity prices to remain volatile. Foreign currencies are also expected to weigh on Coke’s earnings and revenue. However, the company won’t provide its full outlook for next year until early 2023.
Shares of the company rose 3% in premarket trading.
Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:
- Earnings per share: 69 cents adjusted vs. 64 cents expected
- Revenue: $11.05 billion adjusted vs. $10.52 billion expected
The beverage giant reported third-quarter net income of $2.83 billion, or 65 cents per share, compared with $2.47 billion, or 57 cents per share, a year earlier.
Excluding items, Coke earned 69 cents per share.
Adjusted net sales rose 10% to $11.05 billion, beating expectations of $10.52 billion. Organic revenue increased 16%, fueled by higher prices across Coke’s portfolio.
Unit case volume, which excludes the impact of currency and price changes, increased 4% in the quarter. Other consumer giants, like Tide maker Procter & Gamble, have seen their volume plummet as consumers feel inflation hitting their wallets. Coke said it is trying to appeal to budget-conscious consumers with product offerings like value packs in North America.
Coke’s sparkling soft drink segment, which includes its namesake soda, reported volume growth of 3%. Coke Zero Sugar once again stood out, with volume increasing 11% in the quarter.
The company’s hydration, sports, coffee and tea division recorded volume growth of 5%, fueled by Powerade, Bodyarmor and the expansion of Costa Coffee.
Coke’s nutrition, juice, dairy and plant-based beverages division saw flat volume for the quarter. Coke said the lackluster performance was due to lower demand for local brands in Eastern Europe.
For 2022, Coke now expects comparable earnings per share growth of 6% to 7%, up from its previous range of 5% to 6%. The company also raised its organic revenue growth outlook to 14% to 15% from a range of 12% to 13%.