Coca-Cola’s earnings increased in the fourth quarter, completed by higher costs

February 15, 2023: -On Tuesday, Coca-Cola reported quarterly revenue that beat analysts’ expectations, driven by higher costs of its drinks.

But those higher costs have hurt demand for Coke products such as Simply Orange Juice and Fairlife Milk. Coke stated that its unit case volume, stripping out the impact of the finances and price changes, decreased by 1% in its fourth quarter.

Shares of the company increased by 1% in premarket trading.

The beverage company reported fourth-quarter net income attributable to the firm of $2.03 billion, or 47 cents for each share, down from $2.41 billion, or 56 cents for each share, a year earlier.

Excluding an impairment in charging tied to its Russian business and other items, Coke earns 45 cents per share.

Net sales increased 7% to $10.13 billion, driven by a 12% development in pricing and an expensive mix of drinks sold.

Unit case volume was lying in North America and slipped 5% in Europe, the Middle East and Africa segments. CEO James Quincey said in the previous quarter that European consumers were changing their behaviour in response to soaring inflation.

Coke’s sparkling soft drinks area and its water, sports, coffee and tea division stated that flat volume for the quarter, although there were a few bright spots. Coke Zero, Sugar’s book, climbed 9%, and its coffee business saw volume increase by 11% as the company expanded its Costa brand.

The lessened spot was Coke’s juice, value-added dairy and plant-based beverages segment, seeing its volume shrink by 7% in the quarter. The company said the break of its Russian business weighed on the division.

For 2023, Coke projects comparable earnings growth of 3% to 5% and relative earnings per share development of 4% to 5%. Wall Street was forecasting earnings growth of 3.9% and remunerations for each share growth of 3% for the year.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

Embedded Insurance Specialist | Scott Walchek

Trōv is a global leader in embedded insurance, powering the future of digital insurance distribution and emerging mobility. Its robust insurtech platform empowers financial institutions and insurance incumbents to easily embed insurance products within other digital experiences to increase recurring revenue.

Keeping American Families Safe | Martin Burlingame

While only one in ten homes throughout the United States has flood insurance coverage, floods are the country’s most common and deadli-est natural disaster. Since 2000, they have cost American taxpayers $850 billion, two-thirds of the total cost of all natural disasters, yet only 1 out of 10 homes are insured for flood, and that number could soon be reduced.

Working with Gold Standards | Lori Murphy

Insurance needs to be more precise as there are solutions that protect the assets owned by the Property Managers (apartment units) and solutions that protect the Residents and their personal belongings. Which programs to offer and buy depends on each unique client’s needs.

Coca-Cola’s earnings increased in the fourth quarter, completed by higher costs