Coca-Cola Co. (KO) -) posted better-than-expected second quarter earnings Wednesday, while boosting its full-year profit guidance, as it followed its rival PepsiCo (PEP) -) in passing on elevated costs to its customers.
Coca-Cola said adjusted non-GAAP earnings for the three months ending in June were pegged at 78 cents per share, an 11.4% increase from the same period last year and topping the Street consensus forecast of 72 cents per share.
Group revenues, Coca-Cola said, rose 6.2% to $12 billion, a figure that topped analysts' estimates of an $11.75 billion tally. Case volumes were flat to last year but prices were up 10% on the quarter, the company said. Operating margin narrowed by 60 basis points to 20.1%.
Looking into the second half of 2023 financial year, Coca-Cola said it sees revenue growth of between 8% and 9% and adjusted earnings growth of between 5% to 6% from 2022 levels, a 100 basis point improvement from its prior forecast for each.
“I am encouraged that our all-weather strategy, working together with our bottling partners, has delivered strong second quarter results,” said CEO James Quincey.
“We are executing efficiently and effectively on a local level, while maintaining flexibility on a global level," he added. "The strength of our first half results and the resiliency of our business give us the confidence to raise our 2023 guidance.”
Coca-Cola shares were marked 0.88% lower in early Wednesday trading immediately following the earnings release to change hands at $61.70.
Earlier this month, rival PepsiCo lifted its full-year profit forecast following a better-than-expected second quarter update that indicated it was still able to pass on higher prices to snacks and drinks customers.
Overall prices were up 15% from last year through the second quarter, PepsiCo said, while organic volumes were down 2.5%.
PepsiCo said core earnings rose 12.4% to $2.09 per share, 13 cents ahead of the Street consensus forecast, as revenues rose 10.3% to $22.32 billion, again topping analysts forecasts of a $21.73 billion tally.
