Coca-Cola Beats Expectations with Stronger Than Expected Q3 Sales
The Coca-Cola company reported today stronger-than-expected third quarter results today, with expected revenue growth of 14%-15%, up from the 12%-13% it was predicting at the end of Q2. Revenue grew 10% to $11.1 billion July through September.
Price hikes for products have largely been responsible for Coca-Cola's ascension in 2022, but the company is careful not to rest on its laurels. In April, CEO James Quincey told analysts "Coca-Cola has been able to stay ahead of inflation so far, but consumers won’t 'swallow inflation endlessly'."
From a category, perspective, sparkling soft drinks grew 3%, while trademark Coca-Cola grew 3% and Coca-Cola Zero Sugar grew 11%. Hydration, sports, coffee and tea grew 5%, with both hydration and sports drinks growing 6%.
The company saw a 1% impact to net revenues following its March 8 announcement to suspend business in Russia due to the conflict in Ukraine.
Looking into 2023, the beverage giant anticipates commodity prices to remain volatile as well as global inflation to continue to impact its expenses. A full 2023 outlook can be expected during the company's fourth quarter earnings call.
