New York (AFP) - Higher prices for soda helped Coca-Cola score better-than-expected quarterly profits in spite of higher operating costs and the drag of the strong US dollar in international markets, the company announced Tuesday.
The soft drink brand benefited from a 12 percent increase in global pricing, with the biggest price increases in Europe/Middle East Africa, Latin America and North America.
An exception was Asia Pacific, where the company flagged China's Covid-19 lockdowns as a weak area in spite of higher sales in India and the Philippines.
Coca-Cola executives have said they are monitoring the response to higher prices.When the company last reported results in April, executives said they had yet to see a meaningful pullback from consumers to the price changes made to that point.
Results also were boosted by resurgent sales in away-from-home venues such as entertainment and professional sports locales.
But the beverage giant pointed to a drag from higher operating costs and marketing spending compared to the prior year.The strong US dollar also dented revenues in overseas markets.
Net income fell to $1.9 billion, a 28 percent decline from the same period of last year, in part due to strong sales in the current quarter from goods with lower profit margins.
Revenues rose 12 percent to $11.3 billion.
"Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we've taken to execute for growth in the face of challenges in the operating and macroeconomic environment," said Chief Executive James Quincey.
Coca-Cola shares climbed 1.1 percent to $62.87 in pre-market trading.
