Coca-Cola reported better-than-expected earnings in the first quarter and said the impact of tariffs on its business are likely to be “manageable”.
Coke and other beverage makers are facing a 25% tariff on the aluminium they use for cans, among other items. Last week, rival PepsiCo lowered its full-year earnings expectations due to the impact of tariffs.
Coke’s chairman and CEO James Quincey said in February that the company could shift aluminium suppliers, rely more heavily on plastic or glass bottles and take other measures to counteract the tariffs.
Coke’s unit case volumes grew 2% in the first quarter, led by higher demand in China, India and Brazil. Coca-Cola Zero Sugar was a standout, with case volumes up 14%. Demand for sports drinks and coffee fell.
In North America, case volumes fell 3%. Prices rose 8%, partly because Coke sold a higher mix of premium beverages like Topo Chico sparkling water and Fairlife milk.
Revenue fell 2% to 11.1 billion dollars in the January-March period, the company said on Tuesday.
That was in line with Wall Street’s expectations, according to analysts polled by FactSet.
Net income rose 5% to 3.3 billion dollars for the quarter. Adjusted for one-time items, the Atlanta company earned 73 cents per share. That beat expectations of 72 cents.
Shares rose 1.5% before the opening bell on Tuesday.
