Higher soda prices helped Coca-Cola post better-than-expected quarterly earnings despite higher operating expenses and the drag of a strong U.S. dollar in international markets, the company said on Tuesday.
The soft drink brand benefited from a 12 percent increase in global prices, with the largest price increases occurring in Europe/Middle East, Africa, Latin America and North America.
An exception was Asia-Pacific, where the company flagged China’s Covid-19 lockdowns as a soft area, despite higher sales in India and the Philippines.
Coca-Cola executives have said they are monitoring the reaction to higher prices. When the company last reported results in April, executives said they hadn’t seen any meaningful pullback from consumers on the pricing changes made up to that point.
Results were also boosted by resurgent sales at out-of-home venues such as entertainment and professional sports venues.
However, the beverage giant pointed to a burden from higher operating costs and marketing spend year-over-year. The strong US dollar also weighed on sales in overseas markets.
Net income fell to $1.9 billion, down 28 percent from the same period last year, in part due to strong sales in the current quarter of lower-margin merchandise.
Revenue rose 12 percent to $11.3 billion.
“Our results for the quarter reflect the agility of our business, the strength of our streamlined brand portfolio and the actions we have taken to deliver growth amid challenging operating and macroeconomic environments,” said Chief Executive James Quincey.
Coca-Cola shares rose 1.1 percent to $62.87 in premarket trading.
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