Coca-Cola raises revenue forecast as demand rebounds on reopening boost

(Reuters) -Coca-Cola Co raised its full-year sales and profit forecasts on Wednesday, as demand bounces back from pandemic lows for its beverages following the re-opening of theaters, restaurants and stadiums.

Slideshow ( 2 images )

Shares of the world’s largest soda maker, which struggled for much of last year after public venues were shut to curb the spread of the coronavirus pandemic, rose 3% in early trading.

Coca-Cola’s revenues in North America, its biggest market, rose 28% in the second quarter, helped by the vaccine-aided reopening and easing of capacity restrictions across the United States.

Reopening economies in Europe, Asia and Latin America also lifted the company’s adjusted overall revenue by 41.1% in the reported quarter to $10.13 billion, beating analysts’ average estimate of $9.32 billion, according to IBES data from Refinitv.

“Our results in the second quarter show how our business is rebounding faster than the overall economic recovery,” Coca-Cola Chief Executive Officer James Quincey said in a statement.

The company’s total net revenue had slumped 28% in the year-ago quarter due to the lockdowns.

Rival PepsiCo Inc, which is less dependent on sales to restaurants and bars, reported a 20.5% jump in second-quarter revenue last week.

Still, Coca-Cola said volumes were pressured in markets where there has been a resurgence in infections.

The company upgraded its annual organic revenue target, expecting it to rise 12% to 14% versus its prior forecast of a high single digits increase.

Annual adjusted earnings per share are expected to rise 13% to 15%, the company said, compared with its previous estimate for a high single digits to low double digits increase.

Net income attributable to company shareholders rose 48% to $2.64 billion in the second quarter ended July 2. Excluding onetime items, the company earned 68 cents per share, beating expectations of 56 cents.

Source: Read Full Article