Coca-Cola sales fizz higher as prices rise

Coca-Cola has outperformed expectations and raised its full-year forecast as demand for its portfolio of drinks held up in the face of rising prices.

An 8% rise in volumes and a 12% jump in its pricing and products mix helped organic revenues increase 16% to $11.3bn in the second quarter.

Coke reported high single-digit growth across developed and emerging markets, with the US, Mexico and Western Europe highlighted as star performers.

The soft drinks giant benefited from the continued recovery in the out-of-home market following the end of Covid restrictions around the world.

However, margins were squeezed in the quarter, falling from 31.7% last year to 30.7%, as commodity and transportation costs spiralled and the company spent more money on marketing. It left operating profits down 22% year on year to $2.3bn.

The group now expected full-year organic revenue growth of 12% to 13%, upgraded from about 8% to 10% previously.

CEO James Quincey said: “Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we’ve taken to execute for growth in the face of challenges in the operating and macroeconomic environment.”

He added: “We are staying true to our purpose, executing on our strategy and delivering value for our stakeholders.”

Sparkling soft drinks registered growth of 8% in the quarter, with trademark Coke up 7%, while Zero rose 12%.