(Reuters) -Coca-Cola Co on Tuesday forecast 2023 profit growth above Wall Street expectations after edging past fourth-quarter revenue estimates, as demand for its sodas remains steady in the face of multiple price hikes to tackle rising costs.
Shares of the company rose about 1% in premarket trading.
Coca-Cola’s near duopoly in the global carbonated drinks market along with PepsiCo has made it easier for the company to raise prices over the last few quarters to counter higher freight, commodity and labor costs.
Average selling prices rose 12% in the fourth quarter, the maker of Sprite and Fanta said, while unit case volumes slipped 1%.
Coca-Cola in October warned signs were emerging of inflation taking a bigger bite out of consumer spending power, especially in Europe with categories like juices and bottled water in the region seeing a shifting towards cheaper private label brands.
Last week, PepsiCo said it would not raise prices of its sodas and snacks further after multiple rounds of price hikes last year.
Coca-Cola forecast full-year adjusted earnings per share to rise between 4% and 5%, compared to the average analyst estimate of 2.96% growth, according to IBES data from Refinitiv.
The company’s fourth-quarter net revenue rose 7% to about $10.1 billion topping estimates of about $10 billion, while adjusted profit came in line at 45 cents per share.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila)
