Coca-Cola raises annual sales, profit
forecasts on steady demand
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[July 23, 2024]
(Reuters) -Coca-Cola raised its annual organic sales and profit
forecasts on Tuesday, signaling consumers are willing to spend more for
the beverage giant's higher-priced sodas, energy drinks and juices
mainly in international markets.
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Multi can packs of Coca Cola and Diet Coke are seen for sale in a
motorway services shop, Reading, Britain, January 25, 2019.
REUTERS/Peter Cziborra/File Photo |
The
company's shares rose nearly 1% in premarket trading as the
company also posted a surprise increase in quarterly revenue.
Coca-Cola has been foraying into newer regions in Asia and
Europe to keep its revenue growth intact and launching
reformulated versions of its drinks such as Coke Spiced and
Georgia Coffee in markets that are quickly turning
price-sensitive.
The company's average selling price rose 9% in the second
quarter, the Sprite maker said, while unit case volumes
increased 2%.
However, Coca-Cola saw volumes in the North America region fall
by 1% as consumers continue to be cautious with their spending.
PepsiCo CEO Ramon Laguarta said in July that there is "much more
price sensitivity" across U.S. income groups and not just
low-income consumers.
New York-based rival PepsiCo missed second-quarter revenue
estimates as frequent price hikes and competition from
private-label brands resulted in falling sales of its snacks and
soda mainly in the United States.
Coca-Cola forecast fiscal 2024 organic sales to grow between 9%
and 10%, compared with its previous expectation of an 8% to 9%
rise.
The company expects fiscal 2024 adjusted profit to increase
between 5% and 6%, compared with its previous forecast of a 4%
to 5% rise.
Coca-Cola's second-quarter net revenue rose 2.9% to $12.31
billion beating LSEG estimates of $11.76 billion.
On an adjusted basis, the company earned 84 cents per share,
compared with estimates of 81 cents.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil
D'Silva and Shounak Dasgupta)
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