Coca-Cola - KO quarter!
The company not only recovered from the COVID-19 period.
It is blossoming and growing much more than it used to.
It is blossoming and growing much more than it used to.
1. Revenue growth on price action adjustments
Conversely from TSLA, which reported more deliveries yet lower revenue, Coca-Cola did the opposite - unit case volume was even, but net revenue grew 6%. Organically, it was up 11%.
2. Revenues rose at a higher rate than the cost of goods
What amplifies the higher profit is that the price increase supported revenue actually grew at a faster rate than the cost of goods sold.
The cost of goods was up 2% YoY, which is a remarkable feat given the inflationary period we are in right now.
Due to that, gross profits rose by 9%.
3. Slowly turning away from becoming a pure play fountain sugary drink company
It is no surprise that people these days are more conscious of their health.
Coca-Cola's business model does not bode well if health awareness slowly increases.
Thankfully Coke is working on growing its Zero Sugar sales, and also its coffee franchise Costa Coffee.
It has been promising for Coke Zero Sugar and its ultra-filtered milk brand Fairlife as both saw strong volume growth of 5%.
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The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.
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