Coca-Cola beats earnings estimates, raises outlook
Consumers shrugged off higher prices for Coca-Cola’s namesake soda, Simply juice, and other drinks as the company reported quarterly earnings and revenue that exceeded analysts’ expectations.
A full-year outlook was also raised by the company.
2.88% of Coca-Cola’s shares closed higher on Tuesday.
In the third quarter, Coca-Cola reported a net income attributable to shareholders of $3.09 billion, or 71 cents per share, up from $2.83 billion, or 65 cents per share.
A share of the beverage giant earned 74 cents after excluding transaction gains, restructuring costs, and other items.
A rise of 8% in adjusted sales to $11.91 billion was reported. An 11% increase in organic revenue was driven by a reduction in the impact of acquisitions and divestitures.
In the last two years, Coke has raised its prices on many of its products due to rising commodity costs. In July, the company announced it would no longer raise prices in the U.S. and Europe this year. Compared with last year, its prices rose 9% in this quarter.
Despite higher prices, Coca-Cola’s unit case volume grew 2% in the quarter, which excludes pricing and currency. The demand for Coke has weakened somewhat, while PepsiCo has experienced steeper declines.
The company’s North American volume remained flat, but shoppers bought more Coke Zero Sugar and Fairlife dairy drinks. According to Pepsi’s third quarter report, its North American beverage volume declined 6%.