COCA-COLA on Monday (Apr 24) topped estimates for first-quarter revenue and profit on resilient demand for its sodas and multiple price increases by the beverages maker to combat higher commodity and shipping costs.

Average selling prices increased 11 per cent, the maker of Fanta and Sprite said, while global unit case volumes rose 3 per cent.

The company’s shares were up about 2 per cent in premarket trading.

Coca-Cola 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, while rival PepsiCo hit a pause on price hikes.

Consumer goods makers have raised prices to pass on the sharp increases in raw material costs from supply-chain snags fuelled by the pandemic and aggravated by the Russia-Ukraine conflict.

Still, Pepsi and Coca-Cola faced little or no pushback from consumers, thanks to their near domination of the global carbonated drinks market.

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Average price of 192 ounces of Coca-Cola’s soda in the US rose to US$9.30 in 2022 from US$8.03 in 2021, according to NielsenIQ’s data. It stood at US$10.55 this year, so far.

Coca-Cola’s first-quarter operating margin was 30.7 per cent, compared to 32.5 per cent 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 US dollar.

“With pricing expected to moderate over the course of the year, this should come in tandem with moderating levels of commodity inflation, which should help to protect profitability,” said Wedbush analyst Gerald Pascarelli.

Revenue rose 4.3 per cent to US$10.96 billion, beating estimates of US$10.80 billion, according to Refinitiv data.

Adjusted earnings came in at 68 cents per share, compared with estimates of 64 cents.

The company, however, maintained its annual forecasts. REUTERS