Coca-Cola bottles at a Uniontown grocery store in this April 24, 2022, file photo.
Atlanta (USA) – In the fourth quarter, American soft drink manufacturer Coca-Cola increased operating profit by 24 percent year-on-year to USD 2.1 billion (CZK 45.9 billion). The company stated in a press release today that due to high inflation, it had to increase prices. Net sales rose seven percent to $10.1 billion, and the company expects further growth this year.
Coca-Cola has a near-duopoly in the global carbonated drinks market with US rival PepsiCo. That's why he has no problem raising prices when circumstances force it. In recent quarters, the company has raised prices to compensate for more expensive transportation, higher prices of purchased commodities, as well as rising labor costs. fourth quarter sales rose more than expected. Demand for carbonated drinks remains stable, although the company has raised prices due to rising costs.
The average selling price of the products rose 12 percent in the fourth quarter, the company, which makes carbonated drinks brands like Coca-Cola, Sprite, Fanta and others, said. At the same time, the volume of drinks sold decreased by one percent.
Last October, the company warned that it was registering signs of the increasing influence of inflation on consumer behavior, especially in Europe. Lower purchasing power began to show as people began to replace juices and bottled water from the Coca-Cola group with cheaper alternatives, often from the private labels of chain stores.
Competitor PepsiCo announced last week that with another he does not count on carbonated drinks or other products becoming more expensive. Last year, the company raised prices several times.
Coca-Cola's sales for last year increased by 11 percent to 43 billion USD, operating profit increased by 6 percent to 10.9 billion USD. For this year, the company forecasts adjusted earnings per share to grow by four to five percent, while analysts, according to Refinitiv, expected an average growth of 2.96 percent. percent over $61 each. But they are still below the maximum from last spring, when they reached above 67 dollars.