Coca-Cola raises annual revenue forecast on sustained soda demand

[July 26, 2022]  (Reuters) - Coca-Cola Co raised its full-year revenue growth forecast on Tuesday, as demand for sugary sodas held up strong despite price increases to blunt the impact of higher costs for key inputs such as corn syrup and aluminum cans.

Coca-Cola crates are pictured in Abuja, Nigeria September 19, 2018. REUTERS/Afolabi Sotunde/File Photo

The company's shares, which have gained 5% this year, rose about 1% in premarket trading. Packaged food makers have so far felt little impact of decades-high inflation on demand, especially in the United States, as people prioritize spending on eating at home rather than at restaurants. Rival PepsiCo Inc said last week it had not seen any slowdown in demand in response to its price hikes and that there was room for prices to go further up.

Coca-Cola forecast organic revenue to rise 12% to 13% in 2022, compared to prior expectation of 7% to 8% increase.

Net revenue rose 12% to $11.3 billion in the second quarter ended July 1. Analysts on average had expected revenue of $10.55 billion, according to Refinitiv IBES data.

(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila)

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