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Coca-Cola on Tuesday raised its full-year organic sales and profit outlook, signaling that consumers, mainly in international markets, are willing to spend more for the company’s higher-priced sodas, energy drinks and juices.
The company’s shares rose about 1% in premarket trading after the company also reported an unexpected increase in quarterly revenue.
To maintain revenue growth, Coca-Cola is expanding into new parts of Asia and Europe and launching revamped versions of drinks such as Coca-Cola Spiced and Georgia Coffee in markets that are rapidly becoming price-sensitive.
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The Sprite maker said its average selling price increased 9 percent in the second quarter and unit case volume increased 2 percent.
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However, Coca-Cola’s North American volume fell 1% as consumers continued to be cautious about spending.
PepsiCo CEO Ramon Laguarta said in July that “price sensitivity is much greater” not just among lower-income American consumers but across income groups.
PepsiCo CEO Ramon Laguarta said in July that “price sensitivity is much greater” not just among lower-income American consumers but across income groups. (Reuters/Fox News)
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Pep | PepsiCo Inc. | 167.66 | -1.70 | -1.00% |
New York-based rival PepsiCo missed second-quarter earnings forecasts as frequent price hikes and competition from private labels dented sales of snack foods and soda drinks, mainly in the United States.
Coca-Cola now expects organic sales to grow 9% to 10% in fiscal 2024, up from its previous forecast of 8% to 9% growth.
The company now expects adjusted earnings to grow 5% to 6% in fiscal 2024, up from its previous forecast of 4% to 5% growth.
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Coca-Cola’s second-quarter net revenue rose 2.9 percent to $12.31 billion, beating LSEG’s forecast of $11.76 billion.
On an adjusted basis, the company earned 84 cents a share, compared with the expected 81 cents.
