Coca-Cola Q1 results: CEO confident in FY outlook despite headwinds

Coca-Cola Co (NYSE: KO) reported market-beating results for its fiscal first quarter on Monday. Shares popped up 2.50% initially but gave up the entire intraday gain later on.

Key takeaways from Coca-Cola Q1 results

• Net income came in at $2.781 billion versus the year ago figure of $2.245 billion.
• Per share earnings printed at $0.64, an increase from last year's $0.52.
• At $10.491 billion, Revenue was up 16% YoY in the recent fiscal quarter.
• FactSet consensus was for $0.58 of EPS on $9.832 billion in revenue.
• Unit case volume increased 8.0% globally, as per the earnings press release.

Other notable figures include a 7.0% growth in sparkling soft drinks, 12% in nutrition, plant-based beverages and dairy, and 10% in hydration, coffee and tea.

CEO Quincey discussed results on CNBC

Coca-Cola suspended operations in Russia on March 8^th that is expected to result in a 1-2% hit to revenue and a 4 cents hit to EPS in fiscal 2022.

The American multinational, however, maintained its full-year guidance at 7-8% growth in revenue and 5-6% increase in per-share earnings. On CNBC’s “Squawk on the Street”, CEO James Quincey said:

The chief executive expects continued benefit for Coca-Cola as global economies keep reopening after prolonged COVID-driven restrictions. Increased prices to offset inflationary pressures haven’t met a consumer pullback so far, he added.

Quincey agrees the lockdown in China poses another headwind for the future but expects the impact this time to not be “as dramatic” as it was at the start of the pandemic.