Coca-Cola Raises Full-Year Sales Outlook After Strong Q2 Results

Coca-Cola has lifted its full-year sales forecast following a robust performance in the second quarter, driven by continued price hikes. The company now anticipates organic sales growth of 9% to 10%, up from the earlier forecast of 8% to 9%. Revenue for the April-June period increased by 3% to $12.4 billion, surpassing Wall Street expectations of $11.8 billion.

In Q2, Coca-Cola implemented a 9% price increase, building on a 13% rise in Q1. This strategy was influenced by hyperinflation in certain regions, notably Argentina. However, the price hikes resulted in a 1% drop in unit case volume sales in North America. Conversely, unit case volume sales in the Asia Pacific region rose by 3% after the company reduced prices by 3%.

Net income for Coca-Cola fell by 5% to $2.4 billion, or 56 cents per share. When adjusted for one-time items, earnings were 84 cents per share, exceeding analysts’ expectations of 81 cents. The company’s stock price climbed more than 1% before the market opened.

This positive performance stands in stark contrast to PepsiCo, which recently downgraded its full-year revenue forecast after a weaker-than-expected Q2. PepsiCo, known for its snack brands like Frito-Lay, has faced decreased demand following several years of price increases.