Coca-Cola had double digit revenue growth in the fourth quarter, largely due to price increases

With the presentation of its fourth quarter earnings on Thursday, Coca-Cola set a cap on 2021. When the pandemic first broke out in 2020
QUARRY BAY, Hong Kong - March 29, 2022 - PRLog -- the renowned beverage supplier struggled as people spent more time at home and a large number of places where people drink soda were closed. Coca-Cola is benefiting from a tailwind now that consumer mobility is expanding and consumers are visiting restaurants, movie theatres and convenience stores more frequently. In away from home channels, the corporation now has a bigger market share.

Coca-Cola's net sales increased 10% year over year to $9.5 billion in the fourth quarter, while profits per share (EPS) increased 65% to $0.56 per share. When you consider that the fourth quarter has six days less than the same period in 2020, the growth is even more astonishing. Revenue increased 17% to $38.7 billion in 2021, while profits increased 26% to $2.25 per share.

The most recent quarter was the first in which sales from non-traditional channels surpassed those of 2019. The rates paid for Coca-Cola beverages in out of home locations are greater than those charged in grocery stores for beverages intended for consumption at home. Indeed, virtually all of the revenue rise in Q4 was due to higher pricing and the channels through which the beverages were marketed, according to management. Once again we are seeing consumers going out more frequently.

To accommodate for growing inflation, Coca-Cola raised the pricing of its goods. Higher commodity prices are expected to stick with Coca-Cola until 2022, with management anticipating a mid-single-digit percentage headwind to its cost of goods sold. In 2022, the firm is cautiously hopeful that it will be able to pass on increasing expenses to customers.

Coca-Cola is a worldwide enterprise, and if the company is careless with price hikes, populations in particular nations may cut their purchase volumes. In light of this, management expects a revenue growth of 7.5% and earnings-per-share growth of 9% in 2022.

For more latest news in US Stock Market you may also visit us at Sonoma International Limited through our website or contact us via email.

Posted By:*** Email Verified
Tags:Sonoma International Limited
Location:Quarry Bay - Hong Kong Island - Hong Kong
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse
Sonoma International Limited PRs
Trending News
Most Viewed
Top Daily News

Like PRLog?
Click to Share