Coca-Cola (KO) shares hit a record high Monday after it posted stronger-than-expected first quarter earnings, while confirming its full-year profit and sales forecasts, amid what the iconic drinks group called a "highly dynamic and uncertain operating environment".
Coca-Cola said adjusted non-GAAP earnings for the three months ending in March were pegged at 64 cents per share, up 16.4% from the same period last year and 6 cents ahead the Street consensus forecast. Group revenues, Coca-Cola said, rose 16.4% to $10.5 billion, a figure that also topped analysts' estimates of an $9.83 billion tally. Organic revenues were up 18% and the group's operating margin improved to 32.5%.
Looking into the 2022 financial year, Coca-Cola said it sees organic revenue growth of between 7% and 8% and comparable earnings growth of between 5% to 6% , both unchanged from its February forecasts, as inflation-linked input costs continue put a headwind to its bottom line.
“We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment,” said CEO James Quincey. “We remain true to our purpose and are staying close to consumers. We are confident in our full-year guidance, and we are well-equipped to win in all types of environments as we fuel strong topline momentum and create value for our stakeholders.”
Coca-Cola shares were marked 1.9% higher in early trading immediately following the earnings release to change hands at $66.53 each, a move that extends the stock's year-to-date gain to around 12.1%. The stock hit a an all-time high of $67.20 earlier in the session.
Last month, Coca-Cola suspended sales in Russia, following that country's invasion of Ukraine in late February, putting between 1% and 2% of its net operating revenue at risk.
PepsiCo (PEP), Coca-Cola's main global rival, will publish first quarter earnings on Tuesday, with analysts looking for a bottom line of $1.23 per share on revenues of $15.52 billion.
