Coca-Cola raises sales guidance after stronger-than-expected second quarter
The beverage giant said it expects organic sales to grow between 9% and 10% this year.
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Coca-Cola is raising its full-year sales guidance after a stronger-than-expected second quarter boosted by continued price increases.
The Atlanta beverage giant said it expects organic sales to grow between 9% and 10% this year, up from 8% to 9% previously.
Revenue rose 3% to 12.4 billion dollars for the April-June period. That was higher than Wall Street anticipated. Analysts polled by FactSet were expecting revenue of 11.8 billion dollars.
Coke, which hiked prices by 13% in the first quarter, raised them by 9% in the April-June period. The company said that was partly due to hyperinflation in some markets, such as Argentina.
But price increases appear to be hurting demand at home.
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North American unit case volume sales fell 1% after Coke raised prices 11% in the market.
Coke said growing sales of juice, dairy and plant-based drinks were offset by falling demand for water, sports drinks, sparkling sodas and trademark Coca-Cola.
In the Asia Pacific region, where Coke lowered prices by 3%, unit case volume sales were up 3%.
Coca-Cola’s net income fell 5% to 2.4 billion dollars or 56 cents per share. Adjusted for one-time items, including currency fluctuations, Coke earned 84 cents per share. That also beat Wall Street’s forecast of 81 cents.
Before the opening bell, shares of The Coca-Cola Co rose more than 1%.
Coke’s results were a contrast with rival PepsiCo, which tightened its full-year organic revenue guidance earlier this month after posting weaker-than-expected revenue in the second quarter.
But unlike Coke, PepsiCo sells snack foods like Frito-Lay chips. Demand for those products has begun to fall after several years of price increases.