Coca-Cola (KO) Q2 2023 earnings

Bottles of Coca Cola displayed at a grocery store on April 24, 2023 in San Rafael, California.

Justin Sullivan | Getty Images

Coca-Cola on Wednesday raised its full-year outlook after reporting earnings and revenue that topped estimates.

Shares of the company rose 2% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 78 cents adjusted vs. 72 cents expected
  • Revenue: $11.97 billion adjusted vs. $11.75 billion expected

The beverage giant reported second-quarter net income attributable to shareholders of $2.55 billion, or 59 cents per share, up from $1.91 billion, or 44 cents per share, a year earlier.

Excluding items, Coke earned 78 cents per share.

Net sales rose 6% to $11.97 billion. The company’s organic revenue, which strips out the impact of acquisitions and divestitures, increased 11% in the quarter, fueled by higher prices.

Like many food and beverage companies, Coke has been hiking prices on its products in response to higher commodity costs. In the first quarter, it raised prices again, even as rival PepsiCo said it wasn’t planning to increase its prices this year.

Coke’s pricing strategy hasn’t sparked significant backlash yet from customers. Worldwide, its unit case volume, which excludes the impact of pricing and currency changes, was flat for the quarter. Its U.S. volume fell just 1%, dragged down by falling demand for its namesake soda, Powerade and bottled water.

For 2023, Coke now expects comparable earnings per share growth of 5% to 6%, up from its prior forecast of a 4% to 5% rise. The company also hiked its outlook for organic revenue and now predicts an increase of 8% to 9%, up from its previous range of 7% to 8%.

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