Price hikes helped Coca-Cola score higher quarterly earnings Thursday as the soda giant also cited an uptick in sales at North American restaurants, entertainment and sports venues while Covid-19 restrictions eased.

But Coca-Cola -- along with rival PepsiCo -- said rising costs could prove to be a headwind in 2022 even as both companies projected another year of organic sales growth.

Pepsi expects "commodity, transportation and labor costs inflation to persist," executives said in a statement. "We plan to mitigate the impact of these pressures with our revenue management capability and productivity initiatives."

Coca-Cola profits of $2.4 billion were up 66 percent from the fourth quarter of 2020 on a 10 percent rise in revenues to $9.5 billion.

Coca-Cola reported volume increases across its products, including sodas, juice and plant-based beverages, and sports drinks.

North American sales were boosted by a recovery in the fountain business with more consumers going out.

Both Coca-Cola and PepsiCo reported revenue increases after lifting prices in the wake of cost inflation
Both Coca-Cola and PepsiCo reported revenue increases after lifting prices in the wake of cost inflation AFP / FREDERIC BROWN

Results were pinched somewhat by an increase in marketing costs during the quarter. But higher pricing in three of four regions helped offset that impact.

The fourth-quarter performance of higher profit and sales "was driven by ongoing asynchronous recovery in many markets and the company's ability to better adapt to successive waves of the pandemic," Coca-Cola said.

The soda giant expects commodity price inflation to be in the "mid single-digit percentage" range in 2022.

Pepsi reported a 28 percent drop in fourth-quarter profits to $1.3 billion on a 12.4 percent rise in revenues to $25.2 billion.

As with Coca-Cola, Pepsi's results were lifted in most regions by price hikes that helped offset a drag from higher transportation and commodity costs.

Chief Financial Officer Hugh Johnston told CNBC the company is planning for "low double digit" cost inflation in 2022.

Shares of Coca-Cola rose 1.3 percent to $61.82 in pre-market trading, while Pepsi fell 1.3 percent to $169.75.