Coca-Cola Co. raised its revenue outlook for the year and reported strong second-quarter sales, as demand for its beverages remained strong despite price increases.
Beverage company raises revenue forecast for the year
Coca-Cola has seen its share price increase about 5% so far this year.
*Coca Cola tweet on Q2 results
— The Coca-Cola Co. (@CocaColaCo) July 26, 2022
The soda giant said Tuesday it expects its organic revenue,
which strips out currency swings as well as acquisitions or divestitures, to grow by 12% or 13%.
“We continue to see resilience and a lot of demand not just in the U.S. but across the world,” Coke Chief Financial Officer John Murphy said in an interview.
Coke’s organic revenue grew 16% in the quarter ended July 1, as prices on average rose by 12% and the company’s global case volume increased 8%.
The company said second-quarter net income narrowed to $1.90 billion, or 44 cents a share, from $2.62 billion, or 61 cents a share, in the previous year.
As inflation climbs in the U.S., rising food and energy costs have pushed the nation’s most popular price index to its highest level in four decades
Revenue rose 12% to $11.33 billion.
Analysts forecast $10.56 billion in revenue, according to FactSet.
Earlier this month,
rival PepsiCo Inc. reported a 5.2% increase in revenue in the latest quarter from a year earlier, as prices rose and the company benefited from strong sales of its snacks and packaged foods.
*Pepsi tweet on Q2 results
— PepsiCo (@PepsiCo) July 12, 2022
Shares of Coca-Cola edged higher in pre-market trading Tuesday following its earnings release.
Coke has seen its share price increase about 5% so far this year and over 8% in the past 52 weeks.