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Average selling prices rose 11% in the first quarter, the
company said, while unit case volumes rose 3%.
The company 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 compared to rival PepsiCo, which hit a
pause on price hikes.
Still, a near domination of the global carbonated drinks market
along with PepsiCo has helped Coca-Cola to raise prices with
little or no pushback from consumers.
Consumer goods companies have raised prices to pass on steep
commodity and raw material costs that stemmed from supply-chain
snags fueled by the pandemic and aggravated by the
Russia-Ukraine conflict.
Average price of 192 ounces of Coca-Cola's soda in the U.S. rose
to $9.30 in 2022 from $8.03 in 2021, according to NielsenIQ's
data. It stood at $10.55 so far in 2023.
Coca-Cola's first-quarter operating margin was 30.7%, compared
to 32.5% 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 dollar.
The company's first-quarter revenue rose about 5% to $10.98
billion, beating estimates of $10.80 billion, according to
Refinitiv data.
Adjusted earnings came in at 68 cents per share, compared with
estimates of 64 cents.
The company's shares were up about 1% in premarket trading.
(Reporting by Ananya Mariam Rajesh in Bengaluru;Editing by
Sriraj Kalluvila)
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