Coca-Cola Co. KO +1.82% and PepsiCo Inc. PEP -1.72% reported higher quarterly sales as the global soda giants pushed through price increases but also felt the squeeze of higher costs for commodities and transportation.
Coke’s organic revenue increased 9% in the quarter ended Dec. 31 from a year before, driven by a 10% increase in prices. Net revenue at PepsiCo, which also sells Frito Lays snacks and other foods, rose 11.9% with a 7% increase in prices. Organic revenue strips out currency swings as well as acquisitions or divestitures.
Both companies said inflationary pressures hurt their profits as costs rose for trucking, agricultural commodities and packaging. Coke’s operating income fell 28% in the quarter; PepsiCo’s operating profit fell 9%. Still, the results were better than Wall Street forecasts.