The two-year-long pandemic has had an immense impact on many companies and businesses. The popular beverage company Coca-Cola has been one of the impacted entities. However, Coca-Cola sales are now increasing as people return to music and sports venues near the end of the pandemic.
Coca-Cola’s sales increased by 16%, balancing growing expenses and the beverage company’s pullout from Russia. Coca-Cola’s first-quarter sales increased by 16 percent as audiences returned to movie theatres, music venues, and sports stadiums, balancing higher input prices and the company’s decision to suspend operations in Russia.
Impact of War on Coca-Cola
Coca-Cola was one of the firms that stopped doing business with Russia when the nation invaded Ukraine. However, it maintained its revenue growth expectations of 7% to 8% and per-share growth of 5% to 6% for the year on Monday.
According to Zacks Investment Research, the firm, situated in Atlanta, Georgia, reported a net income of $2.78 billion, or 64 cents per share, above Wall Street’s per-share profits forecasts by 6 cents. The world’s largest beverage company reported sales of $10.49 billion in the quarter, above analyst expectations of $9.91 billion. Sales of Coca-Cola Zero Sugar surged by 14%, while sales of the company’s flagship Coca-Cola soft drink increased by 6%. The effervescent soft drink category had a 7% increase in overall sales. Sales of nutrition, juice, dairy, and plant-based beverages increased by 12%, indicating that consumers continue to gravitate toward healthier beverages. Moreover, water, coffee, and tea sales all increased by 10%.
Coke is being hammered by increased prices across the board, from aluminium and sugar to transportation. According to the company, the suspension of activities in Russia will cost the corporation 4 cents per share this year. Coca-Cola Company’s stock increased marginally ahead of the opening bell.