Coca-Cola Reports Strong Q1 Earnings and Revenue Growth

Coca-Cola Reports Strong Q1 Earnings and Revenue Growth

Coca-Cola, the world-renowned beverage giant, has outperformed analysts’ expectations by reporting strong earnings and revenue growth in the first quarter of 2021. The company’s revenue was fueled by price hikes and increased demand for its drinks. The news has led to a 1% increase in share prices in premarket trading.

Financial Results

Coca-Cola’s Q1 net income attributable to shareholders was $3.11 billion, or 72 cents per share, up from $2.78 billion, or 64 cents per share, in the same period last year. The company earned 68 cents per share after adjusting for restructuring charges, tax matters, and other items. Revenue hit $10.96 billion, exceeding Wall Street’s estimate of $10.8 billion. Organic revenue, which excludes the impact of acquisitions and divestitures, rose 12% in the quarter, driven mainly by higher drink prices.

Business Units

Coca-Cola’s unit case volume, which excludes the impact of pricing and currency changes, rose by 3% in Q1. While volume in North America remained flat, demand was strong in Latin America and the Asia Pacific region. The sparkling soft drinks unit reported a 3% volume growth, with the namesake soda and Coke Zero Sugar both showing 3% and 8% growth, respectively. The water, sports, coffee, and tea division also saw volume growth of 4%, driven by strong demand for coffee and bottled water. Coffee business volume rose by 9%, while water division volume rose by 5%. However, the earthquake in Turkey had a negative impact on the demand for tea, resulting in a 3% decline in volume. The volume for the sports drinks unit, which includes Bodyarmor and Powerade, also decreased. Volume for the juice, dairy, and plant-based beverages unit remained flat due to the suspension of its Russian business, offsetting sales growth for its Fairlife dairy brand in the U.S.


Coca-Cola reiterated its prior forecast for 2023, projecting comparable revenue growth of 3% to 5% and comparable earnings per share growth of 4% to 5% for 2023. The company has been raising prices to offset the impact of inflation, but the higher prices had a muted effect on the demand for its beverages. Although volume growth in North America remained flat, the company’s Q1 earnings and revenue growth indicate that Coca-Cola is on track to achieve its growth targets for the next few years.


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