The Coca-Cola Company (NYSE:KO) has reported fourth-quarter revenue that beat expectations as a hike in prices more than made up for a small decline in demand.
The soft drink company reported a 7% rise in 4Q net revenues to $10.1 billion, supported by 12% growth in price/mix, an additional day and the timing of concentrate shipments. Global unit case volume declined by 1%. Comparable earnings per share (EPS) were steady at $0.45.
While earnings were in line with Street estimates, top-line growth was ahead of the $10 billion expected by analysts.
READ: Coca-Cola HBC reports fall in full-year net profits
For the full year, net revenues increased by 11% to $43 billion, driven by 11% growth in price/mix. Global unit case volume grew 5%. Its 2022 comparable EPS rose 7% to $2.48.
Cash flow from operations was $11 billion for the full year, a decline of $1.6 billion versus 2021, as a strong business performance was more than offset by the deliberate buildup of inventory in the face of a volatile commodity environment, cycling working capital benefits from the prior year, and higher tax payments and annual incentive payments in 2022, according to the company.
For both the quarter and the full year, Coca-Cola said it gained value share in total nonalcoholic ready-to-drink beverages, which included share gains in both at-home and away-from-home channels.
“While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment,” the company’s chairman and CEO James Quincey said in a statement. “As we begin 2023, we continue to invest in our capabilities and strengthen alignment with our bottling partners to maintain flexibility.”
For 2023, Coca-Cola said it expects to deliver organic revenue growth of 7% to 8% and comparable EPS growth of 4% to 5%, versus $2.48 in 2022.
The company’s shares traded 1.1% down at $59.91 in late morning trade in New York.
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