CNBC – Inflation is expected to keep raising Coke’s expenses in 2023, and executives signalled that more price hikes could be on the way over the next 12 months. Foreign currency is also projected to weigh on Coke’s earnings and revenue next year. However, the company won’t provide its full 2023 outlook until February.
Shares of the company closed up 2.3%.
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
Coke’s 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 CEO James Quincey said that the company is seeing 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.”
