Coca-Cola has posted strong growth in its first quarter, as volume growth and rising prices more than compensation for mounting costs.

Net revenues grew 16% to $10.5bn in the first three months of 2022, with organic revenues up 18%.

This was driven by 7% growth in price/mix and 11% growth in concentrate sales.

Concentrate sales were 3 percentage points ahead of unit case volume, largely due to the timing of concentrate shipments in the current quarter, the group said.

Operating margin rose to 32.5% versus 30.2% in the prior year, despite the well escalation in input costs and wider inflation, with margin boosted by strong topline growth, partially offset by an increase in marketing investments, the impact of the BodyArmor acquisition and currency headwinds.

Underlying operating profit, net of currency changes, grew 24% to $3.4bn.

“We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment,” said CEO James Quincey.

“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.”

Overall Coke said that growth was driven by “continued investments in the marketplace” as well as the benefit from cycling the impact of the pandemic in the prior year.

Developed markets as well as developing and emerging markets grew high single digits.

Growth in developed markets was led by the United States, the United Kingdom and Mexico, while growth in developing and emerging markets was led by Brazil and India.

Sparkling soft drinks grew 7%, with trademark Coca-Cola up 6%, driven by growth in Coca-Cola Zero Sugar of 14%.

Nutrition, juice, dairy and plant-based beverages grew 12%, led by Fairlife in the United States, Minute Maid Pulpy in China and Maaza in India.

Hydration, sports, coffee and tea grew 10%, with sports drinks in particular up 22%, primarily driven by strong growth of BodyArmor and Powerade. Tea grew 8%, while coffee was up 27%, primarily driven by cycling the impact of Costa retail store closures in the UK in the prior year and continued expansion of Costa coffee across markets.

Hargreaves Lansdown commented: “Fundamentally, Coca-Cola is a marketing machine, and its attention is devoted to soft drinks. A rise in marketing spend suggests the group isn’t sitting back on its laurels though.

“Coke is updating its strategy and brand portfolio to focus more on sharpening its proposition on a regional and local level, but it looks more like a refinement than a revolutionary change to us.

“Nonetheless, it’s encouraging to see the group moving forward.”

The group’s shares were flat at $65.26 in early trading.

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