Coca-Cola’s revenue topped expectations in the final quarter of last year as further price hikes failed to deter shoppers.
Net revenues grew 6% to $11.5bn for the three months to 31 December, comfortably beating analysts’ estimates of $10.7bn. This was mainly due to its price mix, which was up 9%.
Despite the higher prices, shoppers drank it back with volumes up 2%, reversing a surprise decline in the previous quarter. In its biggest market, North America, volumes rose 1% while China and Brazil also saw significant growth.
Its trademark Coca-Cola grew 2%, while Coca-Cola Zero Sugar was up 13%.
“Our all-weather strategy is working, and we continue to demonstrate our ability to lead through dynamic external environments,” said James Quincey, chairman and CEO.
Since taking over as CEO in 2017, Quincey has spent billions on a push into coffee and sports drinks to help turn Coca-Cola into a “total beverage” company to protect against people becoming more health-conscious.
Last quarter, its water, sports, coffee and tea sales rose 2%, with growth in water and tea partially offset by declines in sports drinks and coffee. Coffee was down 1%, primarily due to the performance of Costa Coffee in the UK.
For the full year, Coca-Cola expects organic sales growth of between 5% and 6%, while adjusted earnings per share is expected to grow 2% to 3%.
Coca-Cola shares rose 1% in Tuesday’s premarket trading. It is up around 8% over the past year, losing ground on the S&P 500, which is up 21% for the period.
Its rival PepsiCo missed analysts’ sales expectations last week, marking the third consecutive quarter of missed forecasts.
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