Coca-Cola Q1 results: CEO confident in FY outlook despite headwinds
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Apr 25, 2022
CEO discussed the future outlook on CNBC’s “Squawk on the Street”.
Shares of the beverage giant are roughly flat on Monday morning.
Coca-Cola Co (NYSE: KO) reported market-beating results for its fiscal first quarter on Monday. Shares popped up 2.50% initially but gave up the entire intraday gain later on.
Key takeaways from Coca-Cola Q1 results
Net income came in at $2.781 billion versus the year ago figure of $2.245 billion.Per share earnings printed at $0.64, an increase from last year’s $0.52.At $10.491 billion, Revenue was up 16% YoY in the recent fiscal quarter.FactSet consensus was for $0.58 of EPS on $9.832 billion in revenue.Unit case volume increased 8.0% globally, as per the earnings press release.
Other notable figures include a 7.0% growth in sparkling soft drinks, 12% in nutrition, plant-based beverages and dairy, and 10% in hydration, coffee and tea.
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CEO Quincey discussed results on CNBC
Coca-Cola suspended operations in Russia on March 8th that is expected to result in a 1-2% hit to revenue and a 4 cents hit to EPS in fiscal 2022.
The American multinational, however, maintained its full-year guidance at 7-8% growth in revenue and 5-6% increase in per-share earnings. On CNBC’s “Squawk on the Street”, CEO James Quincey said:
We are very confident in our outlook. We’re coming out of 2021 with good momentum and have a strategy that’s working for us. Downhill, we see a whole series of factors, some headwinds, some potential tailwinds as well.
The chief executive expects continued benefit for Coca-Cola as global economies keep reopening after prolonged COVID-driven restrictions. Increased prices to offset inflationary pressures haven’t met a consumer pullback so far, he added.
There’s not been a big consumer pullback yet. As we look ahead, though, history tells us that it’s unlikely to last forever. There will be elasticity in pricing. So, we’re focused on doubling down on earning our right to price and making sure we have affordable packaging options.
Quincey agrees the lockdown in China poses another headwind for the future but expects the impact this time to not be “as dramatic” as it was at the start of the pandemic.
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