Coca-Cola Co
Despite the rise of inflation driving up the production costs for Coke's many drink lines, the company noted that it had seen a volume of roughly 8% in the last quarter. The soft drink division has been doing exceptionally well, with demand for Powerade, regular Coca-Cola, and Coke Zero up by 7%. Nutrition, juice, and dairy-based beverages grew by 12% in the United States.
According to the company's earnings report, earnings per share reached 64 cents by the end of the quarter, beating analyst expectations of $.58. Revenue reached $10.5 billion compared to the analyst estimate of $9.83 billion. Cash flow was about $620 million, which dropped $1 billion compared to last year, with non-GAAP cash flows clocking in at $400 million with a similar decline of $1 billion.
The "storm clouds" that James Quincy seemed to mention lie off in the direction of Russia and on the horizon of war and pandemic-related inflation.
Per Coke's earnings report, the company halted operations in Russia due to its invasion of Ukraine. According to the beverage maker's estimates, the company will lose 1% of unit case volume of its products and can expect a 1-2% hit to revenues and operating income. Coke also estimates losses of $0.04 per share due to the halt.
Considering the looming default of the Russian government, it seems likely that Coke may have taken some degree of flak from its Russian interests regardless, given that the spending power of the average Russian is due to take a sizable hit.
The beverage maker also has to contend with ongoing inflationary concerns, with Quincy noting to CNN that the company was planning price hikes to help offset inflationary costs.
Thanks to investor excitement, Coca-Cola took a considerable pre-market jump on Monday, rising 2.6% as markets opened. That excitement seems to have been checked later, sliding to end the day with a 0.75% gain compared to Friday.
