Coke ups sales outlook after higher prices boost Q3 revenue

By AP News

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Coca-Cola booked stronger-than-expected sales in the third quarter as it hiked prices around the world.

Bottles of Coca-Cola are displayed at a grocery store in Uniontown, Pa., on Sunday, April 24, 2022. Coca-Cola earnings are reported on Tuesday, Oct. 25, 2022. (AP Photo/Gene J. Puskar)

Coca-Cola booked stronger-than-expected sales in the third quarter as it hiked prices around the world.

The beverage giant raised its revenue expectations for the second time this year. Coke said Tuesday that it now expects organic revenue growth of 14% to 15%, up from the 12% to 13% it predicted at the end of the second quarter.

Revenue rose 10% to $11.1 billion in the July-September period. That was ahead of the $10.5 billion Wall Street forecast, according to analysts polled by FactSet.

Volume rose 4% globally, but it saw a further 12% gain because of higher prices and the mix of products sold.

Shares rose 3% before the opening bell.

Coke has raised prices throughout the year to account for higher ingredient and freight costs. The company also spent more on marketing in all its major markets as stadiums, movie theaters and other venues welcomed back big crowds.

Sales of sparkling soft drinks rose 3%, led by strong demand for Coca-Cola Zero Sugar. Sports drinks and flavored waters gained 6%, while coffee sales rose 5% as Costa stores rebounded from pandemic-related closures last year. Juice and dairy sales were flat.

Coke’s net income rose 14% to $2.8 billion. Adjusted for one-time items, the Atlanta company earned 69 cents per share. That also beat analysts’ forecasts of a 64-cent profit.

Coke’s results mirrored rival PepsiCo, which also raised its earnings forecast this month after boosting prices by 17% in the third quarter.

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Consumer Discretionary

Author: AP News

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Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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