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Coca-Cola earnings beat estimates as demand for drinks away from home tops pre-pandemic levels

Despite the pandemic, Coca-Cola earnings beat estimates

February 11, 2022: -On Thursday, Coca-Cola reported quarterly earnings and revenue that beat analysts’ expectations as consumers drank more away from home, topping pre-pandemic levels for the first time.

But the company issued a weaker-than-expected outlook, which predicts that higher inflation would continue to weigh on its profits throughout 2022. Rival PepsiCo similarly warned investors about increasing costs for packaging and transportation.

Shares of Coca-Cola rose over 1% in premarket trading. The beverage giant reported a fourth-quarter net income of $2.41 billion, or 56 cents per share, up from $1.46 billion, or 34 cents per share, a year earlier.

Excluding items, Coke earned 45 cents per share, which beats the 41 cents per share expected by analysts surveyed by Refinitiv.

Net sales rose 10% to $9.46 billion, topping expectations of $8.96 billion. According to the company, the quarter’s revenue was hurt by six fewer days than the prior year and the timing of concentrate shipments.

Organic revenue, which strips out the impact of acquisitions and divestitures, jumped 9% in the quarter. Unit case volume also increases by 9%.

Coke’s sparkling soft drinks segment, including its namesake soda, saw volume grow 8% in the quarter. Coke Zero Sugar saw double-digit growth.

The volume of nutrition, juice, dairy, and plant-based beverages climbed 11%. The segment includes, which is its second-largest brand by revenue. This summer, the company is working with Molson Coors to release Spiked Lemonade, capitalizing on the juice and plant-based milk brand’s popularity.

Coke’s hydration, sports drinks, coffee, and tea division saw 12% volume growth in the quarter. Sports drinks saw a spike in volume changes, driven by its recent Bodyarmor acquisition. Coffee saw the second-highest increase, growing 17%, as Coke reopened Costa cafes in the United Kingdom.

During the fourth quarter, Coke bought complete control of Bodyarmor for $5.6 billion, which helped the company gain market share in the sports drink category. Coke bottlers will distribute the drink in the U.S., while Bodyarmor will be managed separately within Coke’s North American division.

For 2022, Coke comparable expects earnings per share growth of 5% to 6%, while Wall Street analysts were forecasting 6.1% growth. It expects higher commodity costs to hit profits by mid-single digits. The company is also predicting organic revenue growth of 7% to 8% for the entire year.

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