Coca-Cola Co joined rival PepsiCo Inc in raising annual forecasts as the two top sugary soda makers benefit from resilient demand despite multiple price increases taken to blunt the impact of surging costs.
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.
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