By Scott Kanowsky
Investing.com -- Coca-Cola Co (NYSE:KO) has posted first-quarter income that beat expectations as demand for the drink maker's products remained solid despite a surge in pricing instituted to offset cost pressures.
Average selling prices during the three months to March 31 grew by 11%, the company noted. Coca-Cola previously flagged in February that it will increase the price tag for its popular beverages in a bid to limit the impact from a spike in expenses. Raw material costs have surged following a pandemic-linked snag in supply chains and the outbreak of the war in Ukraine last year.
But unit case volumes still rose by 3%, aided in particular by strong performance of its sparkling soft drinks in Asia Pacific and Latin America. The uptick in these regions helped compensate for the suspension of business activities in Russia in the wake of the hostilities in Ukraine.
Earnings per share on a comparable basis subsequently jumped by 5% to $0.68, above Bloomberg consensus estimates of $0.65.
Shares in Coca-Cola gained more than 1% in premarket U.S. trading on Monday.
The results demonstrated Coca-Cola's "resilience in the marketplace despite an operating environment that remains dynamic," the group behind brands like Sprite soda and Schweppes tonic said.
Coca-Cola backed its estimate for full-year 2023 growth in organic revenue of 7% to 8%. Annual comparable earnings per share are also seen moving up by 4% to 5%, although this figure is expected to include a 3% to 4% impact from currency headwinds.