(AP) – Coca-Cola saw gains last quarter because rising inflation translated into higher profits.
The company said higher prices didn’t hurt demand for its drinks in the fourth quarter, but the company expects slower growth ahead as inflation cools and price increases moderate.
The Atlanta-based beverage giant said Tuesday it expects organic revenue growth of 7% to 8% this year. That’s slower than the 16% organic revenue growth it delivered in 2022.
Higher prices were a big contributor to Coke’s revenue growth last year, as it tried to compensate for inflation. Coke’s revenue rose 7% to $10.1 billion in the October-December period. That was slightly ahead of Wall Street forecasts.
Other big U.S. companies haven’t felt the bite of inflation as most consumers have. According to a March 2022 report by The Associated Press, businesses are facing higher gasoline and heating bills, just like consumers, in addition to higher expenses for labor and raw materials. But unlike many middle- and lower-income Americans, they’ve been making more than enough extra income to cover the additional costs.
Big companies have successfully raised prices for their products, from cups of coffee to auto parts to cans of paint, because their customers have kept lining up regardless.