Coca-Cola Co KO.N raised its full-year revenue forecast on Tuesday, at a time when demand for sugary soft drinks remained strong despite price increases to cushion the impact of higher costs of key inputs. like corn syrup and aluminum cans.
The stock, which has gained 5% this year, was up 1% in premarket trading. Until now, packaged-food makers have felt little of the impact of inflation, which has been soaring for decades, especially in the United States, at a time when people are prioritizing spending on eating at home over restaurants.
Rival PepsiCo Inc PEP.O said last week that it had not seen any slowdown in demand, adding that there was room for prices to rise further.
Coca-Cola said global sales volumes rose 8% in the second quarter, driven by growth in both developed and emerging markets, at a time when selling prices were up around 12%.
Net profit rose 12% to $11.3 billion in the quarter ended July 1. Analysts on average expected revenue of $10.55 billion, according to Refinitiv IBES data.
However, Coca-Cola’s comparable operating margin fell to 30.7% from 31.7%, due to higher raw material and transportation costs.
The company forecasts organic revenue to grow 12% to 13% in 2022, versus the previous expectation of a 7% to 8% increase.
Coca-Cola Femsa, the Mexican bottling company of these beverages, also recorded profits in its quarterly report presented on the Mexican Stock Exchange. Among the factors of these results is a higher volume of sales in Brazil, Argentina and Colombia, at higher prices.
In a similar case, McDonald’s also reported that its sales and earnings exceeded market expectations during the last quarter. This is because the fast food chain benefited from steady online demand, new product launches and higher prices.
With information from Reuters.
