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Coca-Cola Q1 Profit Increases 24%, Results Top Estimates

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Beverages giant Coca-Cola Co. (KO) reported Monday that profit for the first quarter increased 24 percent from last year, drive by a double digit revenue growth of 16 percent, partially offset by an increase in marketing investments and currency headwinds.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also maintained its adjusted earnings and organic revenue growth outlook for the full-year 2022.

Net income attributable to shareowners of Coca-Cola for the second quarter increased about 24 percent to $2.78 billion or $0.64 per share from $2.25 billion or $0.52 per share in the prior-year quarter. Excluding items, comparable earnings per share were $0.64, compared to last year's $0.55.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.

Net operating revenues for the quarter increased 16 percent to $10.49 billion from $9.02 billion in the same quarter last year, driven by an 11 percent growth in concentrate sales and a 7 percent growth in price/mix. The Street expected revenue of $9.83 billion for the quarter.

Organic revenues also grew 18 percent in the quarter. Global unit case volume grew 8 percent, with broad-based growth across all operating segments, driven by continued investments in the marketplace and a benefit from cycling the impact of the pandemic in the prior year.

Strong growth in developing and emerging markets was led by Brazil and India, while it was led by the United States, the United Kingdom and Mexico in developed markets.

Looking ahead to the second quarter, Coca-Cola projects comparable net revenues on an adjusted basis to be impacted by about 4 percent currency tailwind based on the current rates and including the impact of hedged positions, in addition to a 3 percent tailwind from acquisitions. Comparable earnings are expected to include an approximate 4 percent currency tailwind.

For fiscal 2022, the company continues to expect comparable earnings to grow in a range of 5 to 6 percent compared to $2.32 per share in 2021, with a 3 to 4 percent currency tailwind. It also still projects organic revenue growth of 7 to 8 percent.

The Street is looking for earnings of $2.45 per share on revenue growth of 8.0 percent to $41.75 billion for the year.

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