Double-digit growth rates for zero sugar Coke, as well as big gains for its sport and hydration drinks, helped Coca-Cola top Q4 revenue forecasts and deliver a Street-beating bottom line.
Coca-Cola (KO) – Get Coca-Cola Company Report posted stronger-than-expected fourth quarter earnings Wednesday, powered by solid gains for sports drinks sales and double-digit growth for the trademark Coca-Cola Zero Sugar brand.
Coca-Cola said adjusted non-GAAP earnings for the three months ending in December were pegged at 45 cents per share, down 4.2% from the same period last year but 4 cents ahead the Street consensus forecast.
Group revenues, Coca-Cola said, rose 10% to $9.95 billion, a figure that also topped analysts’ estimates of an $8.96 billion tally.
Looking into the 2022 financial year, Coca-Cola said it sees organic revenue growth of between 7% and 8% and comparable earnings growth of between 5% to 6% as inflation-linked input costs put a headwind on its bottom line.
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“In 2021, our system demonstrated resilience and flexibility by successfully navigating through another year of uncertainty,” said CEO James Quincey. “We focused on our key strategies and emerged stronger. We are confident that progress on our strategic transformation has made us a nimbler total beverage company.”
“While the environment remains dynamic, we will build on the momentum from 2021 to drive topline growth and maximize returns,” he added.
Coca-Cola shares were marked 1.7% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $562.08 each.
Earlier Wednesday, Coca-Cola’s main rival, PepsiCo (PEP) – Get PepsiCo, Inc. Report, beat the Street with core earnings of $1.53 per share, up 4.1% from the same period last year, and overall revenues of $25.25 billion, thanks to a big jump in sales from its Frito Lay snacks division.
