“Our results reflect the actions we’ve taken to execute for growth in the face of challenges in the operating and macroeconomic environment,” said CEO James Quincey.
Coca-Cola (KO) – Get Coca-Cola Company (The) Report posted better-than-expected second quarter earnings Tuesday, while lifting its full-year sales guidance, as the iconic beverages group passed on price increases to offset inflation-linked input costs.
Coca-Cola said adjusted non-GAAP earnings for the three months ending in June were pegged at 70 cents per share, 3% higher than the same period last year and 3 cents ahead of the Street consensus forecast. Group revenues, Coca-Cola said, rose 11.5% to $11.13 billion, a figure that also topped analysts’ estimates of a $10.55 billion tally. Organic revenues were up 16% and the group’s operating margin improved 300 basis points to 20.7%.
Looking into the 2022 financial year, Coca-Cola said it sees organic revenue growth of between 12% and 13%, a huge leap from its prior forecast of between 7% and 8% and comparable earnings growth of between 5% to 6% even amid currency headwinds from a stronger U.S. dollar.
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“Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we’ve taken to execute for growth in the face of challenges in the operating and macroeconomic environment,” said CEO James Quincey. “We are staying true to our purpose, executing on our strategy and delivering value for our stakeholders.”
Coca-Cola shares were marked 0.6% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $62.25 each.
Earlier this month, Coca-Cola’s larger rival PepsiCo PEP topped Street earnings forecasts, and boosted its full-year sales forecast, as demand in north America continued to drive the group’s top and bottom line growth.
Looking into the 2022 financial year, PepsiCo said it sees organic revenue growth of around 10%, topping its previous forecast of 8%, while reiterating its forecast for core earnings of $6.63 per share, a year-on-year growth rate of around 8%.
