Coca-Cola (KO) reported an impressive first quarter, surpassing predictions and subsequently raising their annual forecast as they reap the benefits of increased prices, despite minimal growth in volume. The beverage giant reported a first-quarter increase in diluted earnings per share (EPS) of 74 cents, a hike from 72 cents in the same time frame the previous year and higher than analysts' estimates. It also saw a 2.9% year-over-year rise in revenue to $11.3 billion, another beat on predictions. A 13% surge in price/mix contributed to this increase in revenue, even as concentrate sales saw a 2% dip. Unit case volume experienced a minimal increase of 1%.
A surge in demand from the Latin American market significantly boosted the results, with a 22% augmentation in price/mix and a 4% increase in unit case volume. Parallelly, the price/mix in Europe, the Middle East, and Africa rose by 22%, alongside a volume increase of 2%.
While North America contributed a 7% increase in price/mix, the volume remained unchanged. Coca-Cola found the volume of water, sports, coffee, and tea drinks diminished. In the light of these performances, CEO James Quincey expressed optimism.
Coca-Cola further adjusted its annual guidance, predicting an 8% to 9% increase in full-year sales, an elevation from the previous estimate of 6% to 7% growth. The company is expecting further price hikes in regions grappling with extreme inflation.
Despite the strong Q1 results, shares of Coca-Cola dipped slightly by 0.3%, settling at $61.84 near 11:35 a.m. ET on Tuesday, exhibiting a near 5% gain since the year's beginning.