Coca-Cola Co has raised its full-year revenue growth forecast as demand for sugary sodas held up strong despite price increases to blunt the impact of higher costs for key inputs such as corn syrup and aluminium cans.
The company's shares, which have gained 5% this year, rose about 1% in premarket trading.
Packaged food makers have so far felt little impact of decades-high inflation on demand, especially in the United States, as people prioritise spending on eating at home rather than at restaurants.
Rival PepsiCo Inc said last week it had not seen any slowdown in demand in response to its price hikes and that there was room for prices to go further up.
Coca-Cola forecast organic revenue to rise 12% to 13% in 2022, compared to prior expectation of 7% to 8% increase.
Net revenue rose 12% to $11.3 billion in the second quarter ended 1 July. Analysts on average had expected revenue of $10.55 billion, according to Refinitiv IBES data.
James Quincey, chairman and CEO of The Coca-Cola Company, said, “Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we’ve taken to execute for growth in the face of challenges in the operating and macroeconomic environment. We are staying true to our purpose, executing on our strategy and delivering value for our stakeholders.”
Sales of sparkling soft drinks increased 8% during the quarter, driven by growth across all geographic segments with India, Mexico and Brazil on top.
The company's nutrition, juice, dairy and plant-based beverages grew by 6%, led by Maaza in India, Del Valle in Latin America and fairlife in the United States.
In the EMEA region, unit case volume grew 6%, driven by good performance across all operating units. Volume performance was led by strong growth in Western Europe, Turkey and Pakistan, Coca-Cola added.
Price/mix in the region grew 21% and operating income grew 13%, including items impacting comparability and a 14-point currency headwind.