The Coca-Cola Company (Coca Cola Stock) reported results for the third quarter on Tuesday that were higher than expected. The company also raised its sales projection for the year. Price rises helped revenues climb firmly ahead of total volumes.

Coca-Cola (NYSE:KO) said that its adjusted non-GAAP earnings for the three months that ended in September were set at 69 cents per share. This represents an increase of 6.2% over the same time last year and is five cents more than the average projection on Wall Street.

According to Coca-Cola (NYSE:KO), group revenues increased by 10.6% to $11.1 billion, decisively above analysts’ forecasts of $10.52 billion in revenue. Case volumes, on the other hand, increased by only 4%. The group’s operating margin decreased by 100 basis points to 27.9%, even though organic sales increased by 16%.

Coca-Cola has stated that it anticipates organic revenue growth of between 14% and 15% for the 2022 fiscal year, which is an increase from its previous prediction of between 12% and 13% and similar profitability growth of between 15% and 16% from the levels achieved in 2021.

According to James Quincey, the company’s chief executive officer, “Our excellent skills and customer insights continue to help us succeed in the industry.” Our company is able to thrive despite the fact that the operational and macroeconomic environment is always changing. We are making investments in our robust portfolio of brands, which serves as the foundation for our capacity to generate long-term value for our stakeholders.

Coca Cola Stock Price

Shares of Coca-Cola were tagged 0.7% higher in early trading following the results announcement, which caused them to change hands at $57.95 apiece. This movement cuts the Coca Cola stock year-to-date drop to about 12%.

PepsiCo (PEP), a competitor, exceeded the results estimate of Wall Street with a bottom line of $1.97 per share earlier this month. Revenues rose 8.3% to $21.97 billion, in part due to a 20% increase in sales from the North American arm of Frito Lay, which is the group’s snacks segment.

The increase in prices was the driving force behind Frito Lay’s revenue growth, which helped to compensate for an overall reduction in volumes of 2% and for a gain in beverage sales of 3.6% that was less than anticipated, with sales of $6.635 billion estimated.

 

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