Coca-Cola raises full-year outlook as earnings beat expectations

Coca-Cola raises full-year outlook as earnings beat expectations


Coca-Cola earnings beat across top and bottom lines

Coca-Cola on Tuesday raised its full-year outlook after beating Wall Street’s expectations for its quarterly earnings and revenue.

The company also provided a look toward 2023, saying that it expects inflation to keep raising its expenses and commodity prices to stay volatile. Foreign currency is also projected to weigh on Coke’s earnings and revenue. However, the company won’t provide its full outlook for next year until early 2023.

Shares of the company rose 3% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 69 cents adjusted vs. 64 cents expected
  • Revenue: $11.05 billion adjusted vs. $10.52 billion expected

The beverage giant reported third-quarter net income of $2.83 billion, or 65 cents per share, up from $2.47 billion, or 57 cents per share, a year earlier.

Excluding items, Coke earned 69 cents per share.

Adjusted net sales rose 10% to $11.05 billion, topping expectations of $10.52 billion. Organic revenue climbed 16%, fueled by higher prices across Coke’s portfolio.

Unit case volume, which strips out the impact of currency and price changes, grew 4% in the quarter. Other consumer giants, like Tide maker Procter & Gamble, have seen their volume fall as consumers feel inflation hit their wallets. Coke said it’s been trying to appeal to budget-conscious consumers through product offerings like value packs in North America.

Coke’s sparkling soft drinks segment, which includes its namesake soda, reported volume growth of 3%. Coke Zero Sugar was once again a standout, with its volume rising 11% in the quarter.

The company’s hydration, sports, coffee and tea division saw volume growth of 5%, fueled by Powerade, Bodyarmor and the expansion of Costa Coffee.

Coke’s nutrition, juice, dairy and plant-based beverages division reported flat volume for the quarter. Coke said the lackluster performance was due to declining demand for local brands in Eastern Europe.

For 2022, Coke now expects comparable earnings per share growth of 6% to 7%, up from its prior range of 5% to 6%. The company also raised its outlook for organic revenue growth to 14% to 15% from a range of 12% to 13%.



Source

‘F1’ is Apple’s highest-grossing theatrical film ever
Business

‘F1’ is Apple’s highest-grossing theatrical film ever

Still from Apple’s “F1.” Apple Lights out and away we go. “F1: The Movie” hasn’t even reached the checkered flag of its theatrical run, but it’s already Apple’s best film release ever. The film, distributed by Warner Bros. Discovery, zoomed past $293 million at the global box office over the weekend. This outpaced Ridley Scott’s […]

Read More
Family offices ramp up deal-making in June with bets on biotech
Business

Family offices ramp up deal-making in June with bets on biotech

Key Points After a slow spring, investment firms of the ultra-rich made 60 direct investments in June, according to Fintrx. Family offices flocked to biotech and health-care firms such as Antheia, seeking to make an impact and returns at the same time. Antheia founder Christina Smolke told CNBC’s Inside Wealth family offices’ patient capital makes […]

Read More
How Netflix keeps luring big-name directors away from the traditional box office
Business

How Netflix keeps luring big-name directors away from the traditional box office

Film directors Rian Johnson (L), Greta Gerwig (C), and Guillermo Del Toro (R) Getty Images Netflix isn’t interested in bringing movies to theaters. The company’s leaders have said they see theatrical movie releases as an “outdated” model. Yet for more than a decade, the streamer has lured in some of Hollywood’s biggest directors to make content […]

Read More