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Coca-Cola Co. on Monday fueled quarterly earnings and revenue estimates, fueled by strong soda demand as vaccine rollouts and weakened restrictions in Asia encouraged consumers to return to their pre-pandemic routines.
The liquor manufacturer said volumes, a key demand indicator, returned to the 2019 level in March.
“We are encouraged by improvements in our business, especially in markets where the availability of vaccines is increasing and economies are starting to open up,” CEO James Quincey said in a statement.
Shares of the Dow component with a blue chip rose about 1% before the opening bell.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| KO | THE COCA-COLA CO. | 53.74 | +0.42 | + 0.79% |
| PEP | PEPSICO, INC. | 144.16 | +1.85 | + 1.30% |
Consumers bought more soft drinks in China and India to compensate for the weakness in the United States and Western Europe, where restrictions were stricter and consumers preferred to snack or cook more at home.
Coca-Cola is heavily dependent on non-home channels, such as sporting events, restaurants and theaters to generate its sales, while rival PepsiCo Inc is a winner of the pandemic, as it mainly sells its snacks and drinks in supermarkets and grocery stores.
Coca-Cola’s unit cash volume was low in the first quarter, after declining for the past year, while organic sales grew by 6%.
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Net income rose 5% to $ 9.02 billion – the first increase after four quarters of declines – above analysts’ average estimate of $ 8.63 billion, according to IBF data from Refinitiv.
With the exception of one-time items, the company earns 55 cents per share, compared to estimates of 50 cents.
The company and Coca-Cola Beverages Africa (CCBA) have also announced plans to list CCBA as a listed company.