NEW YORK: Higher prices for soda helped Coca-Cola score better-than-expected quarterly profits in spite of higher operating costs and the drag of the strong US dollar in international markets, the company announced Tuesday.
The soft drink brand benefited from a 12 percent increase in global pricing, with the biggest price increases in Europe/Middle East Africa, Latin America and North America, reports AFP.
Coca-Cola executives have said they are monitoring the response to higher prices. When the company last reported results in April, executives said they had yet to see a meaningful pullback from consumers to the price changes made to that point.
Results also were boosted by resurgent sales in away-from-home venues such as entertainment and professional sports locales.
But the beverage giant pointed to a drag from higher operating costs and marketing spending compared to the prior year. The strong US dollar also dented revenues in overseas markets.
Net income fell to $1.9 billion, a 28 percent decline from the same period of last year, in part due to strong sales in the current quarter from goods with lower profit margins.
Revenues rose 12 percent to $11.3 billion.
Coca-Cola shares climbed 1.1 percent to $62.87 in pre-market trading.