Coke revenue rises along with prices; ups outlook for 2022

Jul 26, 2022, 4:18 AM | Updated: 5:49 pm

The Coca-Cola Co. posted strong sales in the second quarter due to price increases and rising demand from restaurants, theme parks and other venues.

The company also raised its revenue expectations Tuesday, saying that it now expects organic revenue growth of between 12% and 13% for the full year. That’s up from earlier projections of a 7% to 8% increase.

Revenue grew 12% in the April-June period to $11.3 billion, the Atlanta company said. That was well ahead of the $10.56 billion Wall Street forecast, according to analysts polled by FactSet.

Coke said it has raised prices globally to compensate for higher ingredient and freight costs. Coke Chairman and CEO James Quincey said those higher prices aren’t yet impacting demand.

But Quincey said it’s difficult to get a clear read on consumers right now. There are early signs that lower-income buyers are trading down to cheaper food brands in groceries and convenience stores, for example, but travel and leisure demand __ at baseball stadiums and theme parks, for example __ is extremely strong.

“This post-COVID re-prioritization of spend by consumers is layered over what feels like a squeeze on purchasing power,” Quincey said Tuesday on a conference call with investors. “How that’s all going to net out in the second half and going into next year, there are a lot of opinions, and I don’t think anyone’s going to know until we actually get there.”

Coca-Cola Zero Sugar sales grew 12% in the quarter on strong global demand. Coffee sales rose 15% as Coke placed its Costa coffee brand in new markets.

In North America, case volumes were up 2%. Coke benefited from higher prices as well as strong sales of premium drinks like Fairlife milk and Smartwater.

Higher operating costs and increased spending on marketing impacted its profits. Coke said its net income fell 28% to $1.9 billion for the quarter. That included losses related to the suspension of its business in Russia due to its invasion of Ukraine.

Excluding one-time items, Coke earned 70 cents per share in the quarter. That was also better than the 67 cent profit that Wall Street had expected.

Coca-Cola shares rose 1% in morning trading.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Gabby Petito's mother Nichole Schmidt, wipes a tear from her face during a news conference o...

Associated Press

Mother of man who killed Gabby Petito said in letter she would help son ‘dispose of a body’

The mother of the man who killed Gabby Petito told her son in an undated letter that she would “dispose of a body” if needed because she loved him so much, according to copies of the note shared publicly for the first time this week by attorneys for Petito's parents.

2 days ago

A member of the 3rd U.S. Infantry Regiment, also known as The Old Guard, places flags in front of e...

Associated Press

5 things to know about Memorial Day including its controversies

Memorial Day is supposed to be about mourning the nation’s fallen service members, but it’s come to anchor the unofficial start of summer and a long weekend of discounts on anything from mattresses to lawn mowers.

2 days ago

FILE - This artist sketch depicts the trial of Oath Keepers leader Stewart Rhodes, left, as he test...

Associated Press

Officers describe chaos, fear on Jan. 6 as judge weighs prison time for Oath Keepers’ Rhodes

Police officers who defended the U.S. Capitol on Jan. 6, 2021, and public servants who fled the mob's attack told a judge on Wednesday that they are still haunted by what they endured, as the judge prepares to hand down sentences in a landmark Capitol riot case.

3 days ago

Pride month merchandise is displayed at the front of a Target store in Hackensack, N.J., Wednesday,...

Associated Press

Target on the defensive after removing LGBTQ+-themed products

Target once distinguished itself as being boldly supportive of the LGBTQ+ community.

4 days ago

(Photo By Tom Williams/CQ Roll Call via Getty Images)...

Associated Press

Former Arizona television journalist announces bid for Schweikert’s US House seat

A former Phoenix television journalist announced her candidacy Wednesday for the congressional seat currently held by seven-term Republican Rep. David Schweikert.

4 days ago

Tortoise by Henry Davis earned an honorable mention in the "Adventures in Nature” student photo c...

Associated Press

When you adopt a desert tortoise, prepare for a surprisingly social and zippy pet

They’re not fluffy, they don’t play fetch and they certainly don’t roll over. But there is such a thing as a lap tortoise.

5 days ago

Sponsored Articles

...

SANDERSON FORD

Thank you to Al McCoy for 51 years as voice of the Phoenix Suns

Sanderson Ford wants to share its thanks to Al McCoy for the impact he made in the Valley for more than a half-decade.

...

Desert Institute for Spine Care

Spinal fusion surgery has come a long way, despite misconceptions

As Dr. Justin Field of the Desert Institute for Spine Care explained, “we've come a long way over the last couple of decades.”

...

OCD & Anxiety Treatment Center

How to identify the symptoms of 3 common anxiety disorders

Living with an anxiety disorder can be debilitating and cause significant stress for those who suffer from the condition.

Coke revenue rises along with prices; ups outlook for 2022