This post was originally published on this site
https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ3N0BF_L.jpg
Average selling prices rose 11% in the first quarter, the company said, while unit case volumes rose 3%.
The company said in February it would raise soda prices further in 2023 “across the world” to combat the stubbornly high costs but at a moderating pace compared to rival PepsiCo (NASDAQ:PEP), which hit a pause on price hikes.
Still, a near domination of the global carbonated drinks market along with PepsiCo has helped Coca-Cola (NYSE:KO) to raise prices with little or no pushback from consumers.
Consumer goods companies have raised prices to pass on steep commodity and raw material costs that stemmed from supply-chain snags fueled by the pandemic and aggravated by the Russia-Ukraine conflict.
Average price of 192 ounces of Coca-Cola’s soda in the U.S. rose to $9.30 in 2022 from $8.03 in 2021, according to NielsenIQ’s data. It stood at $10.55 so far in 2023.
Coca-Cola’s first-quarter operating margin was 30.7%, compared to 32.5% a year earlier, as price hikes did not fully help offset an impact from higher operating costs, an increase in marketing spending, investments and a stronger dollar.
The company’s first-quarter revenue rose about 5% to $10.98 billion, beating estimates of $10.80 billion, according to Refinitiv data.
Adjusted earnings came in at 68 cents per share, compared with estimates of 64 cents.
The company’s shares were up about 1% in premarket trading.
