Coca-Cola exceeds Wall Street revenue expectations

Coca-Cola — On Monday, beverage titan Coca-Cola shared its quarterly earnings, which came out as a positive.

The company’s earnings and revenues were revealed to have topped analysts’ expectations.

Factors behind the positive development can be attributed to price hikes and higher demand for the beverage.


On Monday morning trading, shares of Coca-Cola were up by less than 1%.

Based on a survey by Refinitiv analysts, the following is a comparison of the company’s report with Wall Street’s expectation:

  • Coca-Cola earnings per share: 68 cents adjusted
  • Coca-Cola revenue: $10.96 billion adjust
  • Wall Street expected earnings per share: 64 cents
  • Wall Street expected revenue: $10.8

Coke reported that first-quarter net income due to shareholders of $3.11 billion (72 cents per share) were up from $2.78 billion (64 cents per share) from 2022.

Coca-Cola earned 68 cents per share, excluding certain tax matters, restructuring changes, and other items.

Additionally, net sales rose by 5%, going up to $10.98 billion.

Organic revenue, which removes the impact of acquisitions and divestitures, went up by 12% in the quarter.

It was largely driven by the higher prices of Coca-Cola drinks.

Higher prices

As with most companies this past year, Coca-Cola has been increasing its prices to counter the effects of inflation.

Majority of the first quarter’s price hikes were implemented in 2022.

However, company executives said Coke raised prices even more across operating segments over the first three months of the year.

However, higher prices have also had a muted effect on the demand for Coke products.

Unit case volume

Coca-Cola’s unit case volume grew by 3% in the quarter, excluding the impact of pricing and currency changes.

In North America, volume was flat, while volume fell by 3% in areas like Africa, Europe, and the Middle East.

However, Latin America and Asia-Pacific regions showed that demand remained strong.

Coke also reported a 3% volume growth with its sparkling soft drinks units.

The Coca-Cola soda showed positive signs, with reports of 3% volume growth.

Meanwhile, Coke Zero Sugar’s volume also saw an 8% increase.

Several of the company’s divisions witnessed volume growth of 4%  including:

  • Water
  • Sports
  • Coffee
  • Tea

The surge can be attributed to strong demand for Coke’s coffee and bottled water.

The company’s coffee business reported that its volume saw a 9% volume increase.

Meanwhile, the water division volume rose by 5%.

The tea division saw volume shrink by 4% in the quarter following an earthquake in Turkey.

Sports drinks volume, which covers Bodyarmor and Powerade, also saw declines.

Additionally, the suspension of Coke’s Russian business offset some strong parts, which includes strong sales for the Fairlife dairy brand in the United States.

Read also: SpaceX fails to make orbit but remains a successful launch

Previous forecast

In February, Coca-Cola projected comparable revenue growth of 3% to 5%, with comparable earnings per share growth at a higher 4% to 5% for 2023.

Meanwhile, Wall Street projected revenue growth of 3.9%, while earners per share growth were cast at 3% for the year.

Coca-Cola CEO James Quincey said:

“Inflation is likely to moderate as we go through the year, and there we expect the rate in which prices are going to increase will start to moderate and become more normal by the end of the year.”

In the latest earnings report, the company said it was projecting organic revenue growth of 7% to 8% with comparable earnings per share growth of 4% to 5%.

Furthermore, Coca-Cola is expecting commodity inflation to impact its cost of goods sold by mid single digits this year.

CFO John Murphy spoke with analysts during the company conference call, saying that while oil spot prices and freight costs are down, other commodities’ higher prices will stay for a longer period.

Murphy added that Coca-Cola is holding on to its financial flexibility during its long-running tax battle with the IRS.

Earlier in November 2020, the US Tax Court maintained that the company owed $3.4 billion in taxes.

Since then, the figure has been cut down to $1.6 billion.

Murphy said the company is waiting for the tax court to make its final opinion on the case before the company moves forward in the appeals process.

“Overall, we don’t expect the tax dispute to have a bearing on our ability to deliver on our capital allocation agenda and drive long-term business growth.”

5 Benefits of Implementing Content Marketing in Businesses

Content marketing creates and distributes valuable, relevant, consistent content to attract and retain a clearly defined audience. The goal of content marketing is not to directly promote a brand or its products but rather to educate and inform

Content marketing aims to drive profitable customer action by providing information the target audience finds helpful and valuable. In today’s digital age, content marketing has become essential to any business’s marketing strategy. But what are its benefits? Here are some of them:

1. Cost-Effective Marketing

One of the most significant benefits of content marketing is that it is cost-effective compared to traditional marketing techniques. Traditional marketing methods like print, radio, or TV ads are expensive and may not reach the target audience effectively.

Conversely, content marketing is relatively inexpensive and can be tailored to reach a specific audience. By creating high-quality content that resonates with your target audience, businesses can attract and engage potential customers without breaking the bank.

2. Improves Brand Awareness

Another significant benefit of content marketing is that it helps to increase brand awareness. By consistently creating and publishing relevant and valuable content, businesses can establish themselves as thought leaders in their industry.

As a result, it can help build customer trust and loyalty, leading to increased brand recognition and awareness. Customers searching for information related to your business are more likely to find your content if it is optimized for search engines.

3. Provides Better Search Engine Rankings

Speaking of search engines, content marketing is also an effective way to improve your search engine rankings. Search engines like Google and Bing reward websites that publish high-quality, relevant, and fresh content. Websites producing them should get better rankings on results.

By creating valuable and informative content that uses relevant keywords, businesses can improve their search engine rankings and attract organic traffic to their website. As a result, it can lead to increased website traffic, leads, and sales.

4. Establishes Credibility

Another benefit of content marketing is that it helps to establish credibility and trust with potential customers. By providing valuable and informative content, businesses can position themselves as experts in their industry.

Therefore, it can help to build trust with potential customers, leading to increased brand loyalty and, ultimately, more sales. When customers see that a business is knowledgeable and helpful, they are more likely to do business with them in the future.

5. Secures Long-Term Value

Finally, one of the most significant benefits of content marketing is that it provides long-term value. Content marketing provides long-lasting benefits, unlike traditional marketing methods like print or TV ads. Therefore, the value continues to increase, which benefits the business.

Once you publish high-quality content, it will remain on your website, generating traffic and leads for months or even years. The time and effort invested in creating quality content can continue to pay dividends long after publication.


Content marketing is an effective way to attract and engage potential customers while driving profitable customer action. By creating valuable and informative content, businesses can establish themselves as thought leaders, build trust and credibility with potential customers, and ultimately increase sales.

Additionally, content marketing provides long-lasting benefits, making it a cost-effective and valuable investment for businesses of all sizes. Therefore, instead of choosing the more traditional marketing methods available for businesses, learn the ropes of content marketing and harvest the results quickly.

Kivo Daily is a digital media and technology company dedicated to providing businesses with the latest insights, trends, and thought leadership in the business world. We offer smart business investments, including methods like product market research to create an effective campaign. Visit us today to learn how we can help you succeed in your industry.

SpaceX fails to make orbit but remains a successful launch

SpaceXSpaceX is a private American aerospace company founded by Elon Musk in 2002 with the goal of making space travel more accessible and affordable.

The company designs, manufactures, and launches advanced rockets and spacecraft with the aim of colonizing Mars and making humans a multiplanetary species.

One of its most notable accomplishments is the development of the reusable Falcon 9 rocket and Dragon spacecraft, which have been used to deliver cargo and astronauts to the International Space Station.

SpaceX’s ultimate goal is to create spaceships capable of transporting people to the Moon, Mars, and other planets, making human exploration and colonization of other worlds a reality.

Failure to launch

On Thursday, SpaceX waited to see Starship, the company’s latest project, take off.

Although the massive stainless steel vessel took off from its launch site at Boca Chica, Texas, it failed to make orbit.

According to’s Stephen Clark, around five of its 33 Raptor engines didn’t fire during lift-off.

The rocket managed to clear the launch tower and shoot for the sky.

However, the spacecraft failed to detach from the Super Heavy booster before the vessel started spinning.

Eventually, Starship fell apart in what is technically known as a “rapid unscheduled disassembly.”

The massive launching system stood at 394 feet tall (120 meters), which towered higher than the Statue of Liberty in New York City.

“The vehicle experienced multiple engines out during the flight test, lost altitude, and began to tumble,” SpaceX said in an update.

“The flight termination system was commanded on both the booster and ship.”

The Federal Aviation Administration released a statement on Thursday afternoon, saying:

“An anomaly occurred during the ascent and prior to stage separation resulting in a loss of the vehicle. No injuries or public property damage have been reported.”

“The FAA will oversee the mishap investigation of the Starship/Super Heavy test mission.”

“A return to flight of the Starship/Super Heavy vehicle is based on the FAA determining that any system, process, or procedure related to the mishap does not affect public safety.”

“This is standard practice for all mishap investigations.”

Read also: Tesla price war leads to Chinese EV makers losing profits

One step forward

While it failed to hit orbit, Starship’s successful takeoff indicated a step forward in the United States goal to achieve space travel.

SpaceX foresees the vessel as a key link in a manned mission to help humans one day reach Mars.

Furthermore, the lift-off set a new record for being the largest rocket to ever launch.

SpaceX CEO Elon Musk tempered expectations before the lift-off, saying:

“Success is not what should be expected… that would be insane.”

Following the explosion, the company tweeted:

“With a test like this, success comes from what we learn, and today’s test will help us improve Starship’s reliability as SpaceX seeks to make life multi-planetary.”

Meanwhile, Musk congratulated members of the team for the “exciting” test launch, saying they learned enough for the next test launch.

“I don’t want to jinx it, but I think we are highly likely to reach orbit this year and recover the booster and ship, if not this year, certainly next year,” he wrote in an email to employees.

“Mars, here we come!”

Another attempt

In anticipation of the next test launch, SpaceX would need to obtain a launch license from the FAA.

The company believes it won’t be as troublesome as it was for the Thursday launch.”

NASA Administrator Bill Nelson also seemed enthusiastic, congratulating the team for the flight test.

‘Every great achievement throughout history has demanded some level of calculated risk, because with great risk comes great reward,” Nelson tweeted.

‘Looking forward to all that SpaceX learns, to the next flight test — and beyond.”

Tesla price war leads to Chinese EV makers losing profits

Tesla — On Thursday, Tesla received some good news as shares in the company’s Chinese rivals dropped.

Xpeng declined by 8% in Hong Kong, while Nio also fell by 5.6%.

Two others, Li Auto and Leapmotor, also dropped by 4.2% and by 2.4%, respectively.

Additionally, BYD, the world’s largest plug-in hybrid EVs and battery EVs seller, also witnessed a 1% plunge in Hong Kong.

Meanwhile, its Shenzhen-listed stock reported a bigger loss of 2.3%.


The drop in shares came after Tesla CEO Elon Musk revealed the company would continue cutting prices.

The decision is meant to boost demand for electric cars as the market grows increasingly competitive.

During an earnings call with analysts on Wednesday, Musk released a statement, saying:

“We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin.”

“We do believe… that it’s better to ship a large number of cars at a lower margin, and subsequently, harvest that margin in the future as we perfect autonomy.

Price cuts

In October, Tesla started cutting prices in China, which is home to the world’s largest EV market.

The price cut decision came after losing market share to competitors like the Warren Buffet-backed BYD.

Another price cut came in January 2023 for Tesla’s China-made Model 3 and Model Y.

The slashed prices extended across markets worldwide to bolster demand while challenges from other EV makers increased.

For example, the United States witnessed Tesla reducing its prices for the sixth time in 2023 ahead of its first-quarter earnings.


According to data from the China Passenger Car Association, sales of Tesla’s China-made cars increased by 10% from the same period in January compared to 2022.

Meanwhile, most of the Chinese rivals posted steep declines in sales.

Leapmotor and Xpeng’s January sales took a massive hit, plunging by 86% and 60%, respectively.

Furthermore, Tesla’s decision to slash prices prompted a price war in China.

After Elon Musk’s company made the first move, several Chinese car manufacturers followed a similar path.

Companies started cutting their prices or offered discounts, including:

  • Xpeng
  • Leapmotor
  • BYD
  • Huawei’s EV unit

In February, a Huawei EV salesperson spoke with state-owned Economic Observer, saying:

“Tesla has cut prices a lot. If we don’t cut prices, we really can’t survive.”

According to recent data from the CCPA, Tesla’s sales of China-made vehicles went up by 35% in March, leading to more than 88,000 units.

However, it still fell behind BYD, as the company sold more than 100,000 pure battery EVs.

Read also: Debt limit plan proposed by Kevin McCarthy in Wall Street

The price wars

Tesla’s decision to cut prices created a domino effect that led to a price war and an impact on the company’s sales and profits.

So far in April, the company earned $2.9 billion, which, excluding special items, is down by 22% from 2022.

The lower prices also prompted revenue to a drop of $1.3 billion compared to the fourth quarter, even with record deliveries.

As a result, the company is faced with tighter profit margins.

Other companies like Ford have also cut prices, especially for its key EV, the Mustang Mach-E.

Over the call with investors, CEO Elon Musk said the company is facing headwinds from broader economic conditions.

“It is worth pointing out that the current macro environment remains uncertain,” said Musk.

“I think people already know [that], especially with large purchases such as cars.”


On Thursday, shares of European car makers also took a hit as people grew concerned about pricing pressure.

French company Renault dropped by 6.5% despite the company reporting strong sales and higher prices over the first quarter.

Stellantis, the group that came from a merger between Fiat Chrysler and PSA Group dropped by 4.8%.

Mercedes-Benz Group and BMW fell around 2.8%.

Meanwhile, Volkswagen, Europe’s most successful car maker, took a hit of 1.9%.

Debt limit plan proposed by Kevin McCarthy in Wall Street

Debt — On Monday, House Speaker Kevin McCarthy previewed a plan he hoped House Republicans could pass in the coming weeks.

McCarthy made a speech during the New York Stock Exchange that could raise the debt ceiling, saying:

“So here is our plan: in the coming weeks, the House will vote on the bill to lift the debt ceiling into the next year, save taxpayers trillions of dollars, make us less dependent on China, curb our inflation, all without touching social security and Medicare.

The plan

McCarthy’s proposed plan would serve as a marker of GOP demands in the middle of an impasse as two parties continue to argue on how to resolve the issue.

For now, there is no bipartisan agreement, and Democrats are still arguing that the debt limit should be lifted with no strings attached.

The Republican bill is not expected to pass in the Senate.

According to McCarthy, the GOP’s plan for a one-year debt limit increase would roll back domestic, non-defense spending back to levels seen in 2022.

McCarthy also said they would attempt to pass the GOP plan in the coming weeks.

The crowd

At the New York Stock Exchange, Kevin McCarthy touted the GOP proposal, saying:

“Simply put, it puts us on a fiscally responsible path in three ways: it limits, saves, and it grows.”

The House Speaker’s assurances came as a small group of protestors stood in front of the building, calling him out for plans to cut Medicare funding.

McCarthy repeatedly slammed President Joe Biden, criticizing what he believed was Biden’s unwillingness to negotiate.”

Without exaggeration, American debt is a ticking time bomb that will detonate unless we take serious responsible action,” said McCarthy.

“Yet, how has President Biden reacted to this issue? He has done nothing. So, in my view and I think the rest of America, it’s responsible.”

The White House responds

On Monday, the White House criticized Kevin McCarthy for the GOP demands.

Andrew Bates, the White House deputy press secretary, released a statement, saying McCarthy is “engaging in a dangerous hostage taking.”

Bates also said McCarthy failed to clarify what the House Republicans are proposing and would vote on, arguing that the House Speaker only referenced a vague, extreme MAGA shopping list.

However, White House officials will closely monitor if McCarthy could deliver on his promise: passing a bill in the coming weeks to raise the debt ceiling and curb spending.

A senior White House official said if the House Speaker achieves his plan, Biden would be open to meeting McCarthy.

Read also: Debt Relief Options – What Are Your Options For Debt Relief?

The Republican dilemma

Although he is optimistic, it is a challenge for Kevin McCarthy to get 218 votes, and he can only stand to lose four votes.

“I know there’s a place where we can come to an agreement,” said the House Speaker.

“It’s just hard when people think that there’s not $1 that you can cut out of government spending today.”

Although McCarthy didn’t specify areas that the GOP plan to cut spending, he expressed wishes to tie a GOP energy package called HR-1 to the debt ceiling debate.

The plan passed the House last month.

It is looking to increase American energy production and grow the economy by rolling back on all of President Joe Biden’s climate policy.

Calling out Biden

Kevin McCarthy used quotes from former Vice President Biden regarding the debt crisis of 2011.

“He said, ‘You can’t govern without negotiating.’ Well, what changed, Mr. President? I agree with the former sensible Joe Biden,” he said.

“I agree with the former sensible Joe Biden. He knew that our government is designed to find compromise. I just wish the current extreme Joe Biden would listen to the former Joe Biden.”

The line prompted the only round of applause from the audience throughout his speech.

Recently, the administration reiterated their position in a statement from Andrew Bates, saying:

“There is one responsible solution to the debt limit: addressing it promptly, without brinkmanship or hostage taking – as Republicans did three times in the last administration and as presidents Trump and Reagan argued for in office.”

Kevin McCarthy urged Wall Street to pressure the current administration to undergo spending cuts.

“If you agree, don’t sit back, join us,” said McCarthy.

The House Speaker also said he wasn’t monitoring stock market conditions as he went into debt ceiling negotiations.

“Markets are reacting to work we’ve done, so I shouldn’t be monitoring you,” he told traders.

“I should monitor what we’re doing, and that’s exactly what I do.”

He also noted that markets are going up because the president ignored the markets for 75 days.

However, McCarthy didn’t elaborate on its connection to stocks going higher.

On Monday, markets were trading slightly lower.

McCarthy concluded his speech by invoking the drawn-out speakership battle.

“I will never give up. I will never give up on you, we will not rest until the economy is healthy.”