Coca-Cola benefits from the sometimes considerably higher prices than the American group charges for its soft drinks and juices. As a result, the group increased sales last quarter despite the global economic slowdown strongly.
According to Coca-Cola, prices in January, February and March were 11 percent higher than a year ago across the board. As a result, the company’s quarterly revenue increased by 5 percent to $ 11 billion. This effect was powerful in Europe, the Middle East and Africa. Here prices were 22 percent higher, and turnover increased by 10 percent.
The fact that revenues did not increase as much as prices did, according to Coca-Cola, is mainly due to unfavourable exchange rate effects. Measured in the number of bottles and cans sold, global sales increased by 3 percent. Especially in Asia and the Pacific area, many more drinks were sold. There, the volume sold increased by as much as 10 percent.
CEO James Quincey calls the results encouraging, given the current market conditions. The company also managed to boost earnings per share. In addition, Quincey maintains his company’s previous forecast of 7 to 8 percent growth this year.
Since the end of most corona lockdowns worldwide, Coca-Cola’s performance has been moving in the right direction. For example, consumers also seem willing to pay more for soft drinks in restaurants, stadiums and concerts.