The Coca-Cola Company (NYSE:KO) has today reported a 16% increase in net revenues as the lifting of COVID-19 restrictions has seen an increase in demand for beverages in venues such as restaurants and cinemas.
The company posted net revenues of US$10.5 billion for 1Q 2022, compared to just over $9 billion for the same quarter last year. The company’s performance has exceeded analyst estimates of $9.8 billion.
It also reported a 24% increase in profits of $2.7 billion, or $0.64 per share, compared to $2.2 billion for 1Q 2021 or $0.52 per share.
READ: Consumer brands like Coke and LVMH, energy and REITs 'are best investments' as inflation hits 30-year high
Analysts had predicted a profit of $0.58.
Across all geographic operating segments, sparking soft drinks grew 7%, nutrition, juice, dairy and plant-based beverages grew 12% and hydration, sports, coffee and tea grew 10%. Growth in developed markets was led by the United States, the United Kingdom, and Mexico, and in emerging markets by Brazil and India.
Coca-Cola said it expects the suspension of its operations in Russia due to the conflict in Ukraine will impact its earnings per share by $0.04 and its net revenues and operating income by 1% to 2%.
However, the company still expects to deliver organic revenue growth of 7% to 8% over the course of 2022.
Confident in FY2022 guidance
Coca-Cola CEO James Quincey praised the company’s performance in “a highly dynamic and uncertain operating environment.”
“We remain true to our purpose and are staying close to consumers. We are confident in our full-year guidance, and we are well-equipped to win in all types of environments as we fuel strong topline momentum and create value for our stakeholders.”
Shares of Coca-Cola were up around 0.8% at $65.77 in New York on Monday afternoon.
Contact Emily at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie