Organic revenues rose 10% and comparable EPS increased 18% while the company now reports only 2% price/mix growth versus 3% unit case growth in the quarter. Comparable gross margin declined about 30 basis points, marking the first negative margin contribution in several years.
In the latest quarter management mentioned pricing power less frequently as price/mix growth slowed to 2% for the second consecutive quarter, signaling a shift from its previous emphasis on driving premiumization through price increases.
The company unveiled a 'balanced algorithm' targeting equal contributions from volume and pricing, with unit case growth at 3% and price/mix growth at 2%, reflecting a pivot toward volume-driven expansion in international markets.
Comparable gross margin fell approximately 30 basis points, marking the first negative underlying contribution to margins in years and prompting concerns that the de-emphasis on pricing power may be a response to market saturation and rising input costs.
