The Coca-Cola Company (KO) yesterday, on February 14, announced that its Q4 net revenue rose by 7% on an annual basis to $10.1 billion, above estimates of around $9.95 billion. The soft drink and snack producer’s operating income rose by 24% annually, while earnings per share (EPS) fell by 16% to $0.47. For FY, net revenue added 11% compared to 2021 and reached $43 billion. Operating income was up 6% YoY, with the EPS dropping 3% to $2.19. For the full year 2023, the company forecasts organic revenue growth of 7% to 8%, with comparable EPS growth of 4% to 5%. It expects to generate a free cash flow of around $9.5 billion through cash flow from operations of approximately $11.4 billion.

The surge in revenue came as Coca-Cola HBC’s profits were hit by rising energy prices and its withdrawal from Russia following the diplomatic and trading deterioration. The company’s exit from Russia caused the overall sales volume of Coca-Cola HBC to fall 2.7%, reflecting a 4% decline in Coca-Cola’s sales. Impairments related to Coca-Cola HBC’s exit from Russia, which saw the company post a $145 million balance sheet loss, also caused the company’s earnings per share to fall 24.3%.

Outside of Russia and Ukraine, however, the New York and London-listed company said it sold 7.7% more drinks after demand for Coca-Cola rose 9.1%. Higher sales of Fanta (3.8%) and Sprite (4.7%) further supported the company’s top line. The overall assessment of KO’s future prospects remain reliably positive. Several top investment houses upgraded their targets for KO’s shares upon the publication.