Coke raises full-year sales forecast after stronger-than-expected third quarter
Bottles of Coca-Cola are on display at a grocery market in Uniontown, Pa, on Sunday, April 24, 2022. Coca-Cola reports earnings on Tuesday, Oct. 24, 2023. (AP Photo/Gene J. Puskar)
Coca-Cola raised its full-year revenue forecast Tuesday after a stronger-than-expected third quarter.
Atlanta-based Coke said it now expects its organic revenue will be up 10% to 11% for the year. That's up from the 8% to 9% guidance Coke announced at the end of the second quarter. Coke expects earnings adjusted for currency variations will grow 13% to 14%, up from a previous forecast of 9% to 11%.
Coke's shares rose 2% in premarket trading Tuesday.
Coke said its global case volumes rose 2% for the July-September period. Coffee sales saw the strongest growth, as demand grew in the United Kingdom and China. Coca-Cola Zero Sugar sales were up 3% on growing demand in Latin America and North America. Sports drink sales also grew 3%.
Water sales were up 1%, while tea sales fell 1% on declining demand in Turkey and Latin America.
In North America, case volumes were flat. Coke said growth in sparkling drinks, juices and dairy — including the company's Fairlife and Minute Maid brands — was offset by declines in other categories like water and sports drinks.
Net revenue grew 8% to $11.95 billion in the July-September period, topping the $11.4 billion that Wall Street had forecast, according to analysts polled by FactSet.
Net income rose 9% to $3.1 billion. Adjusted for one-time items, Coke earned 74 cents per share, better than the 69 cents analysts had expected.
The company continued to raise prices to offset higher ingredient costs, but at a more moderate pace. Prices rose 9% in the most recent quarter compared with the double-digit increases Coke instituted in the previous five quarters.
Coke rival PepsiCo also raised its full-year earnings forecast this month after a better-than-expected third quarter.