Coca-Cola raises revenue, profit forecasts on resilient demand, higher prices
(Reuters) -Coca-Cola Co raised its annual revenue and profit forecast on Wednesday, betting on higher pricing and resilient demand for its sodas, especially its namesake drink and Sprite.
The company's shares rose about 1% in premarket trading.
When supply chain snags and the Russia-Ukraine conflict pushed prices of everything from commodities like sugar to transport higher, many consumer goods companies including Coca-Cola (NYSE:KO) hiked prices of its products to offset the impact from these rising costs.
Still, consumers have been steadily spending on sodas and snacks even though rising interest rates and food prices hammer non-essential spending in a difficult economy.
Coca-Cola's average selling prices rose 10% in the second quarter, while unit case volumes remained flat.
The company now expects organic revenue growth of 8% to 9% for the full year, compared with a prior forecast of an increase of 7% to 8%.
Coca-Cola forecast full-year core earnings per share to rise between 5% and 6%, compared with prior expectations of an increase of 4% to 5%.
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