The beverage giant is seeing normalizing costs for sugar, aluminum cans, and more.
"Our pricing levels and the input inflation cost levels are normalizing as we see through the year," he told Yahoo Finance on Tuesday, after the company posted Q1 earnings.
The company updated its organic revenue growth outlook to 8% to 9%, partially due to anticipated good performance, and partially due to "intense inflation" in a select number of countries such as Argentina and Nigeria."There are a set of countries that account for a relatively small percentage of the business in volume terms, that because of the elevated levels of inflation, they drive up both the currency and neutral revenue," Quincey explained.
"The US consumers are doing better in the sense that wages are rising relative to inflation and purchasing power is kind of stabilizing out," Quincey said. "The lower income consumers are under a little more pressure, looking looking more clearly for value." The pull back is "partly from...lower income consumers," but it's not as big of a discrepancy as seen during COVID, said Quincey.Product innovation in its namesake Coca-Cola brand helped drive growth, including having different package sizes like mini cans in the US.
"Performance was ahead of our bullish expectations... as a top pick into the quarter, and we think the stronger than anticipated start of the year from a top and gross margin perspective for 2024 should give investors more confidence on momentum to persist, and grow more conviction of Coca Cola as a earnings compounder," Teixeira wrote.
Earnings Per Share James Quincey Wall Street Estimates Revenue Growth Inflationary Pressures
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