Coca-Cola (NYSE:KO) saw its sales increase in the quarter that ended April 1 thanks to the increase in the price of its products and sustained demand from consumers.

Sales and Profit Beat Estimates

The US soda giant’s quarterly revenue was $10.5 billion, up 16% from a year ago, according to company results released Monday. This is above the $9.8 billion anticipated by the market.

Coca-Cola reported first-quarter 2022 earnings of $2.78 billion, or $0.64 per share, up from $2.25 billion, or $0.52 per share in the prior-year quarter. Q1 earnings beat the consensus estimate of $0.58 per share. To cope with inflation, Coca-Cola has raised the prices of its products by an average of 7%. At the same time, demand was strong with sales up 11% on average.

Coke’s unit case volume increased 8% in the quarter. The company recorded double-digit volume growth in both its nutrition, juice, dairy and plant-based beverages segment and its hydration, sports, coffee and tea segment. The company’s sparkling soft drink unit saw volume increase by 7%, fueled by demand for its namesake soda and its sugar-free version.

Organic growth stands at 18% on an adjusted basis against a market consensus of 9.5%. The operating margin reached 32.5% against 30.2% a year earlier.

Coca-Cola Chairman and CEO James Quincey said, “We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment. We remain true to our purpose and are staying close to consumers. We are confident in our full-year guidance, and we are well-equipped to win in all types of environments as we fuel strong topline momentum and create value for our stakeholders.”

Russia’s Impact on Financials Should Be Moderate

Coca-Cola has also indicated that the impact of the suspension of its operations in Russia, announced on March 8 in response to the Russian invasion of Ukraine, would probably be moderate. The group has indeed estimated that its earnings per share would be cut by $0.04 over the whole year and that its revenues and net profit would be reduced by 1% to 2% following this decision.

The company’s organic growth forecast (excluding mergers and acquisitions) for 2022 has been maintained between 7% and 8%.