A woman is drinking Coca-Cola near Playacar Beach in Playa del Carmen, Mexico.
Artur Widak | NurPhoto | Getty Images
Coca-Cola on Tuesday reported quarterly earnings that beat expectations as the beverage giant’s sales at restaurants, theaters and other venues rebounded from the pandemic.
Here’s what the company reported, compared to what Wall Street analysts polled by Refinitiv expected:
- Adjusted earnings per share: 70 cents, versus 67 cents expected
- Adjusted revenue: $11.3 billion vs. $10.56 billion expected
The Atlanta-based maker of Sprite, Dasani and Minute Maid said it now expects organic revenue growth of 12% to 13%. Their previous guidance was 7% to 8% growth. But the company also said that commodity price inflation is now expected to have a high-single-digit headwind percentage, after previously saying it expected a high-single-digit headwind middle digit
For the three months ended July 1, net income was $1.91 billion, or 44 cents per share. A year ago, it was $2.64 billion, or 61 cents a share.
Coca-Cola said its second-quarter revenue rose 12% from a year ago on higher prices and an increase in overall case volume, boosted by a recovery in its out-of-home business. Before the pandemic, Coca-Cola generated about half of its revenue from out-of-home occasions, such as soda purchases at movie theaters or restaurants.
The company has raised prices to manage higher freight costs, high fructose corn syrup and aluminum. But CEO James Quincey said in April that the company knows consumers won’t swallow inflation endlessly.
In early July, rival PepsiCo reported organic sales growth of 13% in its second quarter, driven largely by higher prices for its snacks and beverages. Pepsi executives said they expect inflation to worsen in the second half of the year.
Coca-Cola shares rose about 1% to $62.79 in premarket trading.