The beverage giant raised its revenue outlook for the year
Coca-Cola $KO’s consumers are making it pop. The beverage company reported better-than-expected first-quarter earnings on Tuesday, thanks in part to an increase in its prices. Shares of Coca-Cola were down slightly in mid-day hours, trading at about $62.
The Atlanta-based company said increased pricing contributed to the rise in sales, attesting that the increases were “driven by the impact of inflationary pricing” as well as “pricing actions in the marketplace,” according to its earnings report.
Coca-Cola said it would lift its full-year revenue outlook as it saw an increase in purchases for its soft drink brands, including Sprite and Fanta. The company expects to deliver organic revenue growth of between 8% and 9%, it added. That’s despite news that some of its partners, such as McDonald’s, have seen consumers tightening their wallets.
Meanwhile, Coca-Cola’s water, sports drink, coffee, and tea category faced a slight decline of 2% as consumer demand globally fell for the division.
Nonetheless, the company’s revenue beat Wall Street’s expectations. For the first quarter, it generated $11.3 billion, about $0.74 cents a share. Analysts had forecasted it would report $10.95 billion, or roughly $0.69 cents a share.
James Quincey, CEO of Coca-Cola, said that the company is “encouraged” by its start to the year “amidst a dynamic backdrop,” adding that it is “primed for sustained success, thanks to the right strategies, clear alignment, a powerful portfolio and strong execution.”
Some of those strategies include AI. Just last week, Coca-Cola said it had signed a $1.1 billion five-year partnership with Microsoft $MSFT to streamline its workplace operations, manage costs, and improve productivity.
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