Coca-Cola Co (NYSE:KO) stock rose 0.047% (As on April 25, 11:31:11 AM UTC-4, Source: Google Finance) after the company reported higher-than-expected sales in the first quarter as it continued to hike prices and saw its business in China improve. Pricing and mix which includes changes in package sizes contributed 11 percent to its revenue growth while concentrate sales rose one percent. The company has said it expects to see slower growth this year as prices moderate. Unit case volumes jumped 10 percent in Asia as COVID-related shutdowns ended in China, India and Australia.  A unit case is equal to 192 US fluid ounces of finished beverage. Coca-Cola added in its earnings that it gained value share in total NARTD (non-alcoholic ready to drink) beverages, led by share gains in Japan, India, Australia and Vietnam. In North America, sales were flat. Higher sales of soft drinks, juice and dairy were offset by lower sales of water, tea and coffee.

Further, the company said in February it would raise soda prices further in 2023 “across the world” but at a moderating pace, even as rival PepsiCo hit a pause on price hikes. Free cash flow (non-GAAP) declined approximately $520 million versus the prior year, resulting in negative free cash flow of approximately $120 million.

KO in the first quarter of FY 23 has reported the adjusted earnings per share of 68 cents, beating the analysts’ estimates for the adjusted earnings per share of 65 cents. The company had reported the adjusted revenue growth of 5 percent to $11 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $10.8 billion, according to analysts polled by FactSet. Average selling prices increased 11% in the first quarter, the maker of Fanta and Sprite said, while global unit case volumes rose 3%. Meanwhile, first-quarter operating margin slipped to 30.7%, compared to 32.5% a year earlier, on higher operating costs, increased marketing spending, investments and a strong dollar. Comparable operating margin (non-GAAP) expansion was primarily driven by strong topline growth and the impact of refranchising bottling operations, partially offset by an increase in marketing investments and higher operating costs versus the prior year as well as currency headwinds

During the first quarter, the company and its bottling partners increased availability by more than 300,000 stores and approximately 40,000 coolers ahead of the summer season. The company also increased household penetration via targeted promotions on large packages for the at-home channel.