By Connor Hart
Shares of Coca-Cola climbed 4.4%, to $67.39, in trading Tuesday morning, after the beverage maker notched higher-than-expected revenue and profit in the fourth quarter.
The stock, on pace for its largest percent increase since February 2022, is up 13% in the past year.
Coke saw higher revenue as consumers bought more to-go drinks at higher prices, including its energy drinks, teas, and dairy and plant-based beverages. Price/mix--a metric that includes prices as well as product mix, packaging and size--increased 9% during the recent quarter, with higher prices accounting for the majority of the raise.
Higher prices were "split somewhat evenly between normal pricing actions across our markets and intense inflationary pricing in a handful of markets experiencing currency devaluations," Chief Financial Officer John Murphy said on a call with analysts.
Chief Executive James Quincey told The Wall Street Journal that aluminum tariffs could further raise prices. The soda company is working to ease any potential price increases by examining ways to use less aluminum and finding different sources of the material, he said.
Despite higher prices and looming tariffs, the overall consumer environment is pretty stable in the sense that both developed and emerging markets are experiencing economic growth, Quincey said on a call with analysts.
Lower-income customers in the U.S. and Europe are still facing some disposable income pressures, he said, though he added that the rest of the company's customer base is gaining in terms of disposable income and spending a bit more.
Coca-Cola has also benefited from innovations, whether they be limited-time offerings to create buzz or long-term investments to launch new lines of teas, sparkling waters and juices, which are driving revenue growth, Quincey said.
The company reported a profit of $2.20 billion, or 51 cents a share, in the recent quarter, compared with $1.97 billion, or 46 cents a share, a year earlier. Adjusted per-share earnings were 55 cents, beating the 52 cents that analysts polled by FactSet forecast.
Revenue increased 6.4% to $11.54 billion, ahead of the $10.68 billion that analysts were looking for, according to FactSet.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
February 11, 2025 10:03 ET (15:03 GMT)
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