Coca-Cola has raised its full-year sales guidance following a stronger-than-expected second quarter, driven by continued price increases. The company now anticipates organic sales growth between 9% and 10% for the year, up from the previous estimate of 8% to 9%. Notably, Coca-Cola Zero Sugar saw a 20% rise in global volume sales.
For the April-June period, Coca-Cola reported a 3% revenue increase to $12.4 billion, surpassing Wall Street’s expectations of $11.8 billion. The company implemented a 9% price hike during the quarter, following a 13% increase in the first quarter, partly due to hyperinflation in markets like Argentina and Nigeria. Chairman and CEO James Quincey justified the price hikes by pointing to rising input costs and strategic decisions to maintain profitability.
However, the price increases have impacted demand in North America, where unit case volume sales dropped by 1%. While there was some softness in away-from-home demand, such as in restaurants and movie theaters, overall consumer demand remained resilient. Quincey noted that lower-income consumers are seeking greater value, influencing Coke’s collaboration with restaurant partners on combo meal deals. In other regions, unit case volumes rose by 3% in the Asia Pacific and 5% in Latin America, with stable sales in Europe, the Middle East, and Africa.
