Despite Ongoing Macro Headwinds, Coca-Cola Boasts Strong Start to the Year; Shares Inflated

Evidencing its pricing power, Coca-Cola’s fourth-quarter results featured impressive 18% organic sales growth (with a 7% benefit from price/mix and 11% from concentrate), particularly when viewed against the 6% gains posted a year ago. Even as mobility restrictions (to stem the spread of COVID-19) plagued its operations in China (with an unquantified volume decline for the quarter), these constraints weren’t broad based, as management suggested both at-home and away-from-home volumes grew in the quarter on a consolidated basis (unquantified). Although the economic backdrop remains quite volatile, we think the firm is poised to withstand the onslaught due to its vast troves of global consumer insights, which should enable it to tailor its mix to evolving trends on a local level.