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

business
Coca-Cola Raises Sales Guidance After Stronger-Than-Expected Second Quarter
Coca Cola said it expects organic sales to grow between 9% and 10% this year. Copyright 2024 The Associated Press. All rights reserved.
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By Dee-Ann Durbin, Associated Press

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 it expects organic sales to grow between 9% and 10% this year, up from 8% to 9% previously.

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Revenue rose 3% to $12.4 billion (€11.4 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 by 13% in the first quarter, raised them by 9% in the April-June period. The company said that was partly due to hyperinflation in some markets, such as Argentina.

But price increases appear to be hurting demand at home.

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Cans of Diet Coke
Shares in The Coca Cola Co rose more than 1% following the news (Yui Mok/PA)

North American unit case volume sales fell 1% after Coke raised prices 11% in the market.

Coke said growing sales of juice, dairy and plant-based drinks were offset by falling demand for water, sports drinks, sparkling sodas and trademark Coca-Cola.

In the Asia Pacific region, where Coke lowered prices by 3%, unit case volume sales were up 3%.

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Coca-Cola’s net income fell 5% to $2.4 billion or 56 cents per share. Adjusted for one-time items, including currency fluctuations, Coke earned 84 cents per share. That also beat Wall Street’s forecast of 81 cents.

Before the opening bell, shares of The Coca-Cola Co rose more than 1%.

Coke’s results were a contrast with rival PepsiCo, which tightened its full-year organic revenue guidance earlier this month after posting weaker-than-expected revenue in the second quarter.

But unlike Coke, PepsiCo sells snack foods like Frito-Lay chips. Demand for those products has begun to fall after several years of price increases.

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