Coca-Cola (NYSE: KO) posted better-than-expected earnings Tuesday and consequently raised its full-year outlook. The company now expects its two-pronged strategy of raising prices and providing more affordable options to incentivize sales growth.
The multinational beverage corporation reported earnings of USD0.69 per share, compared to the expected USD0.64 a share. Revenue amounted to USD11.05 Billion, higher than analysts anticipated USD10.52 Billion. Additionally, organic revenue rose 16% amid higher prices within Coke’s portfolio.
“Our strong capabilities and consumer insights continue to help us win in the marketplace,” said James Quincey, Chairman, and CEO of The Coca-Cola Company. “Our business is resilient amidst a dynamic operating and macroeconomic environment. We are investing in our strong portfolio of brands, which is a cornerstone of our ability to deliver long-term value for our stakeholders.”
Other competitors such as Procter & Gamble, have experienced a dip in volume as consumers get hit by inflation. According to Quincey, Coca-Cola has seen some changes in consumer behavior.
“Europe is probably the most obvious example,” Quincey told analysts on the company’s conference call. “In the at-home channel, you can see growth in private label across a number of categories. In beverages, you can see it tick up a little in water and juices.”
The company now anticipates adjusted earnings per share growth of 6% to 7%, an increase from its prior range of 5% to 6%.