Coca-Cola has upgraded its full-year sales guidance following a better-than-expected second quarter, driven by continued price increases.
The beverage giant now expects organic sales to grow between 9% and 10% this year, up from its previous forecast of 8% to 9%.
“We still have input costs that are going up, and our strategy remains,” said Coca-Cola Chairman and CEO James Quincey. “Yes, there’ll be cost inflation. Yes, we’ll look to put it through.”
The company’s revenue rose 3% to $12.4 billion in the second quarter, beating Wall Street’s expectations. Coca-Cola Zero Sugar saw a 20% jump in global volume sales, while price hikes contributed to the growth.
However, price increased appear to be hurting demand in North America, where unit case volume sales fell 1%.
Quincey noted that consumer demand overall has been resilient, but lower-income consumers are seeking greater value.
Coca-Cola’s net income fell 5% to $2.4 billion, but adjusted earnings beat Wall Street’s forecast. Shares of the company rose less than 1% in morning trading.
The results 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.
Boluwatife Enome
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