The Coca-Cola Co (NYSE: KO) posted quarterly earnings that beat analysts’ expectations. This is due to consumers drinking more of its namesake sodas, Powerade sports drinks and Costa coffee.

Net income in Q1 was $2.78 billion, or $0.64 per share, compared to $2.25 billion, or $0.52 per share, a year earlier. Net sales rose 16% to $10.5 billion, beating Wall Street expectations of $9.83 billion.

The company said the suspension of operations in Russia would reduce sales by 1% and revenue and operating profit by 1-2%. Coca-Cola also believes that the decision will reduce its comparable earnings by $0.04 per share. Despite the suspension of its Russian business, the company reiterated its full-year revenue growth guidance of 7% to 8% and comparable EPS growth of 5% to 6%. For the second quarter, the company expects a positive variance of 4% due to foreign exchange.

“The fact that Coca-Cola has been able to successfully raise prices so far is a testament to the strength of its brands and global logistics. First-quarter margins actually rose to an adjusted 31.4% from 31% a year earlier. The company’s Achilles’ heel continues to be the impact of Covid-19 concerns and restrictions on out-of-home sales in places like restaurants and stadiums. Blockages in China delayed sales in the Asia-Pacific region in the quarter, with organic sales up just 5% year-on-year.

Quincy said out-of-home sales worldwide are still below 2019 levels, partly because some outlets such as restaurants have closed for good. But this can be seen as a positive for investors, suggesting that there is room for further upside as the situation continues to normalize. Therefore, we are raising our target price for The Coca-Cola Co. shares to $72,” commented Sevak Araratyan, an analyst at Freedom Finance.