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

GAINS | Empowering Companies to Make the Right Decision | Bill Benton

Ensuring the right products are in the right place and at the right time is critical for companies also dealing with supply chain constraints and a high degree of variability. Uncertainty has become the name of the game and the only way to effectively optimize inventory through continuous, data-driven assessments, planning, and decision-making.

Extensiv | Creating the Future of Omnichannel Fulfillment | Sheridan Richey

Food Huggers, a consumer brand that designs products to reduce waste at home, may be in an enviable position now but before they found Extensiv Order Manager, managing booming orders and staying on top of inventory was a huge operational challenge. The business has inventory spread across multiple geographically distributed warehouses, with orders received via multiple sales channels, including Shopify storefronts and Amazon.

Chainguard | Making Supply Chain Secure | Dan Lorenc

By late 202, the alarm bells were just starting to ring. Researchers discovered that Russian spies had months earlier burrowed deep into the networks of several U.S. federal networks. The spies, working for Russia’s foreign intelligence service, had first targeted SolarWinds, an IT company whose software helps to remotely manage the networks of thousands of businesses, Fortune 500 organizations and federal government agencies.

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