The Coca-Cola Company (NYSE:KO) announced that it has boosted its full-year revenue forecast on sustained demand for sugary sodas, this despite price increases to offset the impact of higher costs for key inputs such as corn syrup and aluminum cans.
The global beverages giant said its worldwide sales volume increased 8% in the second quarter, lifted by growth in both developed and emerging markets, while average selling prices rose about 12%.
Coca-Cola shares gained more than 1% in premarket trading following the announcement.
The company noted its net revenue rose 12% to $11.3 billion in the quarter ended July 1, surpassing average analyst expectations of $10.55 billion, according to Refinitiv IBES data.
Coca-Cola's comparable operating margin, though, shrunk to 30.7% from 31.7% during the period, hurt by climbing commodity and transportation costs.
The company said it expects its organic revenue to rise 12% to 13% in 2022, compared to previous expectations of a 7% to 8% increase.
Meanwhile, its full-year adjusted earnings per share, excluding the impact of a stronger dollar, is expected to jump 14% to 15%, compared with the previous forecast of 8% to 10% growth.
As well, Coca-Cola reported that it now sees a stronger US dollar shaving 6% off of its year-end revenue, compared to the company’s previous forecast of a 2% to 3% decline.
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