Sales at Coca-Cola surged 16% during the first quarter as crowds returned to movie theaters, music venues and sport stadiums, offsetting rising input costs for the company and the suspension of operations in Russia.
Coca-Cola was among the companies to pull the plug on Russian operations after the country invaded neighboring Ukraine. But on Monday, it stuck by earlier revenue growth projections of 7% to 8% and per-share growth of 5% to 6% for the year.
The Atlanta company posted net income of $2.78 billion, or 64 cents per share, topping Wall Street's expectations for per-share earnings by 6 cents, according to a survey by Zacks Investment Research.
The world’s largest beverage maker posted revenue of $10.49 billion in the period, also exceeding industry analyst forecasts of $9.91 billion.
Sales of Coca-Cola Zero Sugar increased 14%, while sales of its namesake Coca-Cola soft drink rose 6%. Overall sales for the sparkling soft drink category climbed 7%.
Consumers continued to gravitate to healthier beverages, with sales of nutrition, juice, dairy and plant-based beverages up 12%. Sales of hydration, sports, coffee and tea grew 10%.
Global unit case volume increased 8%, while pricing and mix rose 7%. Coca-Cola said accelerated cost pressures and ongoing supply challenges are leading it to look for different and more affordable ways to get its products to consumers. This includes offering single-serve packages.
Coke is getting hit across the board on rising costs for everything from aluminum and sugar to transportation. The company has said the suspension of operation in Russia will trim 4 cents from per share earnings this year.
Shares of The Coca-Cola Co. rose slightly before the opening bell.