Coca-Cola Co (NYSE:KO) stock fell 0.40% (As on February 15, 11:17:34 AM UTC-4, Source: Google Finance) after the company forecast 2023 profit growth above Wall Street expectations after edging past fourth-quarter revenue estimates, as demand for its sodas remains resilient in the face of multiple price hikes to tackle higher costs. The company said that it would raise soda prices further in 2023 to combat stubbornly high costs, in sharp contrast to a halt at rival PepsiCo Inc as the beverage giants bet on different paths to boost sales for the year. Coca-Cola’s average selling price rose 11% for the full year. Unit case volumes for Coca-Cola fell 1% in the quarter, hit by a drop in demand in Europe, where higher fuel and power costs have sparked a cost-of-living crisis.

KO in the fourth quarter of FY 22 has reported the adjusted earnings per share of 45 cents, the first time in three years the company failed to beat expectations. The company had reported the adjusted revenue growth of 7 percent to $10.1 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $10 billion. Organic revenues (non-GAAP) grew 15%. Organic revenue (non-GAAP) performance was strong across operating segments and included 12% growth in price/mix and 2% growth in concentrate sales. For the quarter, operating margin, which included items impacting comparability, was 20.5% versus 17.7% in the prior year, while comparable operating margin (non-GAAP) was 22.7% versus 22.1% in the 1 prior year. Cash flow from operations was $11.0 billion for the full year, a decline of $1.6 billion versus the prior year, as strong business performance was more than offset by the deliberate buildup of inventory in the face of a volatile commodity environment, cycling working capital benefits from the prior year, and higher tax payments and annual incentive payments in 2022. Free cash flow (non-GAAP) was $9.5 billion, a decline of $1.7 billion versus the prior year.

Coca-Cola forecast full-year adjusted earnings per share to rise between 4 per cent and 5 per cent, compared to the average analyst estimate of 2.96 per cent growth, according to IBES data from Refinitiv. The company sees 2023 organic revenue growth of 7 per cent to 8 per cent.

Meanwhile, in 2022, the company completed the refranchising of company-owned bottling operations in Cambodia to Swire Coca-Cola Limited, a subsidiary of Swire Pacific Limited, and completed the sale of its stake in the bottler in Egypt to Coca-Cola HBC AG. The company also announced the refranchising of company-owned bottling operations in Vietnam, which was completed in January 2023, and the company agreed to sell its stake in the bottler in Pakistan.