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Shares of Coca-Cola rose 3% in premarket trading on Tuesday
after the soda giant also beat third-quarter revenue and profit
estimates.
Average selling prices rose 12% in the third quarter, the maker
of Sprite and Fanta said, while unit case volumes increased 4%.
Lack of major competition in the global carbonated drinks market
has encouraged Coke and PepsiCo to raise prices this year on
expectations that their products were among the last to feel the
pinch during an economic slowdown.
PepsiCo raised its annual forecasts earlier this month after
topping quarterly revenue estimates.
Consumer goods giants Nestle and Procter & Gamble also reported
better-than-expected sales last week, as shoppers continued to
pay more for goods like Nescafe coffee and Gillette razors.
On an adjusted basis, Coca-Cola earned 69 cents per share on net
revenue of $11.1 billion. Analysts had expected earnings of 64
cents per share on revenue of $10.52 billion, according to IBES
data from Refinitiv.
The company forecast organic revenue, which excludes the impact
of a stronger dollar, to rise 14% to 15% in 2022, compared to
prior expectation of 12% to 13% increase.
Coca-Cola forecast full-year adjusted earnings per share to rise
6% to 7%, compared to prior expectation of 5% to 6% growth.
The company, which gets about two-thirds of its total revenue
from outside the United States, reiterated that it expects a 9%
hit to full-year earnings from a stronger dollar.
(Reporting by Uday Sampath and Granth Vanaik in Bengaluru;
Editing by Sriraj Kalluvila)
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