Coca-Cola raises full-year sales guidance after stronger-than-expected second quarter

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Coca-Cola is raising is full-year sales guidance after a stronger-than-expected second quarter

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 Tuesday it now expects organic sales to grow between 9% and 10% this year, up from 8% to 9% previously. One standout was Coca-Cola Zero Sugar, which saw a 20% jump in global volume sales.

Revenue rose 3% to $12.4 billion for the April-June period. That was higher than Wall Street anticipated. Analysts polled by FactSet were expecting revenue of $11.8 billion.

Coke, which hiked prices 13% in the first quarter, raised them 9% in the April-June period. The company said that was partly due to hyperinflation in some markets, including Argentina and Nigeria. Coke has raised prices every quarter since the end of 2020.

Coca-Cola Chairman and CEO James Quincey defended the price hikes. In North America, where Coke's prices rose 11%, about half of the increase was due to sales of more expensive beverages like Topo Chico mineral water and Fairlife milk, Quincey said. The other half was due to straight price hikes.

“We still have input costs that are going up, typically the agricultural ones rather than the metal or commodity-based ones, but in the end, our strategy remains," Quincey said. «Yes, there’ll be cost inflation. Yes, we’ll look to put it through.”

But price increases appear to be hurting demand at home, where North American unit case volume sales fell 1%. Coke saw lower North American demand for water, sports drinks, sparkling sodas, coffee, tea and its trademark Coca-Cola beverages.

Quincey said the company saw some softness in away-from-home demand at places