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Coke and PepsiCo Post Big Sales Gains on Big Price Increases


Global giants able to tap into robust demand but caution about rising costs for materials and transportation

Coca-Cola Co. and PepsiCo Inc. reported higher quarterly sales as the global soda giants pushed through price increases but also felt the squeeze of higher costs for commodities and transportation.

Coke’s organic revenue increased 9% in the quarter ended Dec. 31 from a year before, driven by a 10% increase in prices. Net revenue at PepsiCo, which also sells Frito Lays snacks and other foods, rose 11.9% with a 7% increase in prices. Organic revenue strips out currency swings as well as acquisitions or divestitures.

Both companies said inflationary pressures hurt their profits as costs rose for trucking, agricultural commodities and packaging. Coke’s operating income fell 28% in the quarter; PepsiCo’s operating profit fell 9%. Still, the results were better than Wall Street forecasts.

PepsiCo Chief Financial Officer Hugh Johnston said he is preparing for the possibility that these cost pressures could continue into 2023.

“We’re obviously facing supply chain disruptions," such as finding enough truck drivers, he said in an interview. “The good news for us is because we’ve continued to invest so much behind our brands and because we’ve been innovating so successfully, it does give us the pricing power to pass along those costs."

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