The company's shares rose about 2% in premarket trading as it also beat second-quarter results.
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 hiked prices of its products to offset the impact from these rising costs.
Still, consumers have been steadily spending on soft drinks 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 in North America volumes declined 1%, showing little impact to demand with overall unit case volumes remaining flat.
The average price of 192 ounces of Coca-Cola's soda in the U.S. rose to $9.35 in 2022 from $8.03 in 2021, according to NielsenIQ's data. It was $10.56 as of June 17 this year.
Rival PepsiCo also raised its annual revenue and profit forecasts for a second time this year after beating second-quarter results last week, easing worries over a slowdown in demand due to price hikes.
In Asia Pacific, China's reopening from pandemic restrictions has led to an increase in consumer activity helping Coca-Cola post higher revenue in the region.
Coca-Cola 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%.
The company forecast full-year core earnings per share to rise between 5% and 6%, compared with prior expectations of an increase of 4% to 5%.
“I am encouraged that our all-weather strategy, working together with our bottling partners, has delivered strong second quarter results,” commented James Quincey, chairman and CEO of The Coca-Cola Company.
“We are executing efficiently and effectively on a local level, while maintaining flexibility on a global level. The strength of our first half results and the resiliency of our business give us the confidence to raise our 2023 guidance.”
Additional reporting by ESM