Coca-Cola Consolidated, Inc., the largest Coca-Cola bottler in the U.S., reported operating results for the third quarter on Tuesday.

For the quarter ended Sept. 27, Coca-Cola Consolidated reported net income of $52.9 million compared to $13 million in the same period last year. The company posted non-GAAP earnings per share of $7.19 and and GAAP earnings per share of $5.53, topping average estimates of $3.43 per share.

The company noted that its net income in the quarter “was adversely impacted by fair value adjustments” to its acquisition-related contingent consideration liability.

Net sales for the third quarter increased 4.5 percent from a year ago to $1.33 billion, with physical case volume up 3.9 percent.

“Our 2020 margins, profit and cash flow are all exceeding our initial expectations as we generate strong top-line growth, realize favorable input costs, and tightly manage our operating expenses. Lower single-serve sales during the pandemic resulted in gross profit shortfalls that we have more than offset by significantly reducing spending in a number of categories during this unique time,” President and COO Dave Katz said in a statement.

Gross profit increased $40.2 million, or 9.3 percent, and gross margin improved 160 basis points due to selling price increases and favorable input costs.

Third-quarter income from operations increased $50 million, or $46.5 on an adjusted basis.

Selling, delivery and administrative (SD&A) expenses decreased $7.4 million, or 2 percent, due to lower labor and benefits costs as a result of COVID-19-related impacts on the company’s business operations model.

Katz added that demand for its products “remained strong in the third quarter as consumers continued to adapt to changes in local markets and fluctuations in their daily routines.”

Coca-Cola Consolidated, Inc. shares (COKE) closed at $232.01, up $5.64, or 2.49 percent, on Tuesday.