Coca-Cola: Annual forecast revised upward as demand is not affected by price increases
Coca-Cola $Coca-Cola(KO.US$While consumers refrained from beverages, the company's demand for carbonated beverages continued to be solid, and in response to exceeding quarterly financial results against the backdrop of price increases, annual sales and profit forecasts were raised.
The recent performance of European consumer product manufacturers such as rival Pepsi Cola and Unilever shows that consumer spending on carbonated drinks, snacks, and other essential goods is strong, and spending on this part is essential even if prices are raised multiple times. This offsets the impact of rising costs.
Coca-Cola Chief Executive Officer (CEO) James Quincey stated in a conference call after the financial results on Wednesday that “we are seeing strong engagement from consumers across our main brands, such as Sprite, Fanta, and Thumbs Up.” At the beginning of this month, Pepsi-Cola raised its annual sales and profit forecast for the second time this year in response to the fact that it surpassed second-quarter results.
What was the average sales price of Coca-Cola in the second quarter10%Although it rose, sales volume fell 1% in North America, and overall unit case sales remained flat, with little impact on demand. However, some Wall Street analysts said the focus for the second half of this year will be on whether sales volume will return to strong growth.
Is Coca-Cola's current full-year main business profit growth8%through9%It is predicted that it will be, but the previous forecast was an increase of 7% to 8%. The company, which is the manufacturer of Sprite and Fanta, also had full-year core earnings per share higher than anticipated5%through6%It is anticipated that it will increase. Coca-Cola shares traded slightly lower.
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