Coca-Cola increases revenue forecast due to higher prices By Stocksak

© Stocksak. FILEPHOTO: Coca-Cola bottles are displayed at a Denner supermarket as the spread of coronavirus disease (COVID-19), continues in Glattbrugg. June 26, 2020. REUTERS/Arnd Wiegmann

(Stocksak) – Coca-Cola’s (NYSE:) Co joined PepsiCo’s (NASDAQ:) Inc to raise annual forecasts. The two largest sugary soda producers benefit from a resilient market despite numerous price increases that are designed to offset the effects of rising costs.

Coca-Cola shares rose by 3% in premarket trading Tuesday after the soda giant beat its third-quarter revenue estimate and profit estimates.

Sprite and Fanta reported that average selling prices increased by 12% in the third quarter. Meanwhile, unit case volumes increased by 4%.

PepsiCo, Coke, and PepsiCo have increased their prices this year because there is not much competition in the global carbonated drinks industry. They believe that their products will be the first to feel the pinch in an economic slowdown.

PepsiCo raised its annual outlooks earlier in the month after topping quarterly revenue estimates.

Consumer goods giants Nestle and Procter & Gamble (NYSE:) also reported better-than-expected sales last week, as shoppers continued to pay more for goods like Nescafe coffee and Gillette razors.

Coca-Cola earned an adjusted 69 cents per share for net revenue of $11.1 million. According to Refinitiv’s IBES data, analysts expected earnings of 64c for $10.52 billion in revenue.

The company expects organic revenue to increase 14% to 15% in 2022 (which excludes the impact from a stronger dollar) compared to its prior expectation of 12%-13%.

Coca-Cola expects full-year adjusted earnings per shares to rise 6% – 7% from the prior expectation of 5% – 6% growth.

The company, which receives about two-thirds its total revenue from the United States, stated that it expects a 9% increase in full-year earnings due to a stronger dollar.

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