Coca-Cola Co. on Tuesday raised its full-year revenue and profit forecasts, confident that demand for its sugary soft drinks will remain stable after several price increases to mitigate the impact of rising costs.
Shares of the Dow component were up 2.5% in pre-market trading.
Coca-Cola has been raising prices steadily in markets around the world this year, as its products were among the last to experience a slowdown in demand during economic downturns.
The lack of significant competition in the global carbonated beverage market has also buoyed Coca-Cola and its rival PepsiCo to raise prices.
PepsiCo raised its full-year guidance earlier this month after beating quarterly revenue estimates. Coca-Cola said net income rose 10% to $11.1 billion in the third quarter ended Sept. 30. Analysts averaged expected $10.52 billion, according to Refinitiv IBES data.
The company forecasts organic revenue, which excludes the impact of a stronger dollar, to rise 14% to 15% in 2022, versus the previous expectation of a 12% to 13% increase.
Coca-Cola expects full-year adjusted earnings per share to rise 6% to 7%, versus the previous forecast of 5% to 6% growth.
