The Coca-Cola Company has reported its revenues surged 16% to $10.5bn (£8.37bn) in the three months ended 1 April 2022 (Q1 FY22), with 18% growth in organic revenues.
Operating income also grew 25%, which included a six-point currency headwind, driven by “strong” organic revenue (non-GAAP) growth across all operating segments, including a benefit from the timing of concentrate shipments in certain operating segments.
Sparkling soft drinks sales increased 7% which was reportedly driven by growth across all geographic operating segments, primarily Europe, Middle East and Africa, and Latin America.
Trademark Coca-Cola also increased 6% and Coca-Cola® Zero Sugar grew 14%, both of which were also driven by growth across all geographic operating segments.
Within the company’s global ventures, net revenues rose 28%, benefiting from the impact of Costa retail store closures in the United Kingdom in the prior year.
Meanwhile, Coca Cola announced the suspension of its business in Russia on 8 March 2022 amid the conflict in Ukraine. The direct impact of this is estimated to be a 1% impact to unit case volume and a 1% to 2% impact to net revenues and operating income.
For the second quarter of FY22, Coca Cola expects comparable net revenues (non-GAAP) to include an approximate 4% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 3% tailwind from acquisitions.
James Quincey, chairman and CEO of The Coca-Cola Company, 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.”