Coca-Cola has revealed a strong set of fourth quarter and full-year results as consumer stuck with the soft drinks giant’s range of beverages despite inflated prices.
Revenues in the final quarter of 2022 increased 7% to $10.1bn (£8.3bn), a 15% organic rise, while the top line jumped 11% to $43bn (£35.4bn) in the full year, a 16% organic increase.
The group pushed up prices by 12% in the three months to 31 December and by 11% across the year as a whole, but volumes only declined by 1% in Q4 and grew 5% for the year, with the suspension of sales in Russia contributing to pressure on volumes.
Coca-Cola said it gained market share in the non-alcoholic ready-to-drink beverages category in both the quarter and the year, which included gaines in the at-home and out-of-home channels.
“While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment,” said chairman and CEO James Quincey.
Its unit case volumes for sparkling soft drinks came in even for the quarter and grew by 4% for the year, with trademark Coke up 4% in 2022 and Coke Zero up 11%.
Juice, value-added diary and plant-based drinks declined 7% in Q4 and grew 3% in the year, with strong growth in developed markets but an unfavourable impact from the suspension of trading in Russia.
Water was flat for the quarter and up 5% for the year, while coffee bounced back 11% and 13% respectively, primarily driven by the recovery of the Costa stores in the UK following pandemic closures.
Operating profits at the group soared by 24% in Q4 to $2.1bn (£1.7bn) and by 6% to $10.9bn (£9bn) in the year.
Coca-Cola guided for organic revenue growth of 7% to 8% in 2023.
“As we begin 2023, we continue to invest in our capabilities and strengthen alignment with our bottling partners to maintain flexibility,” Quincey added.
“We are keeping consumers at the center of our innovation and marketing investments, while also leveraging our expertise in revenue growth management and execution. Our growth culture is leading to new approaches, more experimentation, and improved agility to drive growth and value for our stakeholders.”
The group’s shares increased almost 1% in pre-trading ahead of the US markets opening thanks to results beating Wall Street expectations.
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