Coca-Cola reported a 10% increase in fourth-quarter revenue to $9.5 billion, boosted by the completion of its $5.6 billion acquisition of BodyArmor, a company that produces sports performance and hydration drinks.
The soda giant’s hydration, sports, coffee, and tea segment grew 12% for the quarter, with sports drinks leading the pack at 18% growth.
Coke claims that BodyArmor was the No. 2 sports drink in 2021 for measured retail channels in the U.S.
- Coke acquired the remaining 85% of the company it didn’t own in November.
- The sports drink company will be managed as a separate business within Coca-Cola’s North America operating unit.
Coke’s full-year revenue grew 17% to $38.7 billion, while operating income fell 15%. The company said it was “impacted by the timing of concentrate shipments.”
For 2022, Coca-Cola expects organic revenue growth of 7% to 8% and commodity price inflation to be in the “mid-single-digit percentage.”
Coca-Cola’s rival Pepsi also posted earnings on Thursday, recording fourth-quarter revenue of $25.25 billion, beating analysts’ estimates of $24.24 billion. For 2022, it expects 6% revenue growth.
On the company’s investor call, CEO Ramon Laguarta said Pepsi has expanded production capacity for its own sports drink, Gatorade, which has reportedly been hit by supply chain issues related to bottle supply. Laguarta expects the problem to dissolve soon.
Both Coke and Pepsi attributed some of their revenue success to price hikes.