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Coca-Cola Co.’s stock rose 1.1% premarket Wednesday, after the drinks and snacks giant beat second-quarter earnings estimates and raised its guidance after again raising prices in an inflationary environment.
Atlanta-based Coca-Cola
KO,
posted net income of $2.547 billion, or 59 cents a share, in the quarter, up from $1.905 billion, or 44 cents a share, in the year-earlier period. Adjusted per-share earnings came to 78 cents, ahead of the 72 cent FactSet consensus.
Revenue rose 6% to $11.972 billion from $11.325 billion, also ahead of the $11.742 billion FactSet consensus.
Revenue was driven by 10% growth in price/mix and growth in sales of concentrate, which were 1 point ahead of unit case volume, mostly due to the timing of concentrate shipments.
The company also gained share in total nonalcoholic ready-to-drink beverages.
The company said it is focused on reinvigorating some of its iconic brands, including Minute Maid, now more than 60 years at Coca-Cola, which has become the world’s biggest juice brand. The company launched a sparkling version of Minute Maid in China and an “Aguas Frescas” version in North America and conducted a global rebrand with a new look.
It has also been working on affordable entry packs, which led to double-digit basket growth in Vietnam, and double-digit household penetration in Japan with the ‘Mini pack, Mini Price,” ad campaign.
Unit case volume was down 1% in North America, as growth in sparkling flavors and juice, value-added dairy and plant-based beverages was more than offset by declines in water, sports, coffee and tea as well as traditional Coca-Cola.
See also: What is aspartame, and is it bad for you? Here’s what health experts say
“The strength of our first half results and the resiliency of our business give us the confidence to raise our 2023 guidance,” Chief Executive James Quincey said in a statement.
The company is now expecting full-year organic revenue growth of 8% to 9%. It expects adjusted organic EPS growth of 9% to 11%.
The stock has fallen 2% in the year through Tuesday’s close, while the S&P 500
SPX,
has gained 19%.
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