Coca-Cola (NYSE:KO) on Tuesday reported quarterly earnings that topped expectations as the beverage giant’s sales at restaurants, theaters and other venues recovered from the pandemic.
The Atlanta-based maker of Sprite, Dasani and Minute Maid said it now expects organic revenue growth of 12% to 13%. Its previous guidance was for growth of 7% to 8%.
But the company also said commodity price inflation is now expected to a high-single digit percentage headwind, after previously saying it expected it to be a mid-single digit headwind.
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 per share.
Coca-Cola said its revenue in the second-quarter increased 12% from a year ago on higher pricing and an increase in global case volume, which was driven by recovery in its away-from-home business.
Adjusted earnings per share proved to be 70 cents, as opposed to the 67 cents expected, while adjusted revenue came in at $11.3 billion versus $10.56 billion expected
Before the pandemic, Coca-Cola generated about half of its revenue from away-from-home occasions, like soda purchases at movie theaters or restaurants.
The company has raised prices to manage higher costs on freight, high fructose corn syrup and aluminum. But CEO James Quincey said in April that the company knows that consumers won’t swallow inflation endlessly.
KO shares gained $1.35, or 2.2%, to begin Tuesday at $63.54.
