Coca-Cola Co (NYSE:KO) stock fell 0.030% (As on Apr 26, 11:15:52 AM UTC-4, Source: Google Finance) after the company warned that consumer demand could slow as rampant inflation shows no sign of cooling and said it was focusing on more affordable and refillable glass bottles in markets facing the biggest pinch from price increases. However, the company beaten analysts’ expectations during the first quarter as crowds returned to movie theaters, music venues and sport stadiums, offsetting rising input costs for the company and the suspension of operations in Russia. Sales of Coca-Cola Zero Sugar increased 14%, while sales of its namesake Coca-Cola soft drink rose 6%. Overall sales for the sparkling soft drink category climbed 7%. Consumers continued to gravitate to healthier beverages, with sales of nutrition, juice, dairy and plant-based beverages up 12%. Sales of hydration, sports, coffee and tea grew 10%. Global unit case volume increased 8%, while pricing and mix rose 7%. Coca-Cola said accelerated cost pressures and ongoing supply challenges are leading it to look for different and more affordable ways to get its products to consumers. This includes offering single-serve packages.

KO in the first quarter of FY 22 has reported the adjusted earnings per share of 64 cents, beating the analysts’ estimates for the adjusted earnings per share of 58 cents, according to Refinitiv data. The company had reported the adjusted revenue growth of 16 percent to $10.5 billion in the first quarter of FY 22, also exceeding industry analyst forecasts of $9.91 billion. The company said the suspension of its operations in Russia would impact its annual profit by 4 cents per share and annual net revenue by about 1% to 2%. Revenue performance included 7% growth in price/mix and 11% growth in concentrate sales. Concentrate sales were 3 points ahead of unit case volume, largely due to the timing of concentrate shipments in the current quarter, partially offset by the impact of one less day in the quarter. Cash flow from operations was approximately $620 million, a decline of $1.0 billion versus the prior year. Free cash flow (non-GAAP) was approximately $400 million, a decline of $1.0 billion versus the prior year.

Meanwhile, to prepare for the expected drop in consumer purchasing power, Coca-Cola said it was expanding the distribution of cheaper returnable or refillable glass bottles in emerging markets in Latin America and Africa. It is also experimenting with returnable bottles in the Southwest United States.