© Reuters. FILE PHOTO: Bottles of Coca-Cola are displayed at a supermarket of Swiss retailer Denner, as the spread of the coronavirus disease (COVID-19) continues, in Glattbrugg, Switzerland June 26, 2020. REUTERS/Arnd Wiegmann
(Reuters) – Coca-Cola (NYSE:) Co raised its annual revenue and profit forecasts on Tuesday, banking on demand to remain steady for its sugary sodas amid multiple price increases taken to blunt the impact of surging costs.
Shares of the Dow component rose 2.5% in premarket trading.
Coca-Cola has been steadily raising prices in markets across the globe this year on expectations that its products were among the last to see a slowdown in demand during economic downturns. Lack of major competition in the global carbonated drinks market has also encouraged Coke and rival PepsiCo (NASDAQ:) Inc to hike prices. PepsiCo raised its annual forecasts earlier this month after topping quarterly revenue estimates. Coca-Cola said net revenue rose 10% to $11.1 billion in the third quarter ended Sept. 30. Analysts on average had expected revenue of $10.52 billion, according to Refinitiv IBES data.
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.
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