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Sales Recovery Push Coca-Cola Results to Exceed Expectations

Coca-Cola profits beat expectations as sales volume recover from during the pandemic

The Coca-Cola Company published its quarterly results that exceeded analysts’ estimates, supported by the return of sales of its beverages in restaurants, theaters and other places compared to what they were during the pandemic, which was reflected in a rise in Coca-Cola’s shares by more than 1%.

The soft drink company earned 70 cents per share on an adjusted basis during the three months ended July 1, beating analyst estimates of only 67 cents per share. As a whole, the Atlanta-based company expects its core revenue to grow by 12-13%, knowing that its previous guidance was a growth of only 7-8%, but on the other hand, the Sprite Beverage Company, Dasani and Minute Maid indicated that commodity price inflation It will be worse than the company thought, and it reiterated that earnings will grow 5-6% year over year.

Coca-Cola stated that the revenue growth of the second quarter reached 12% compared to the same quarter a year ago due to high prices and the growth of global sales volume, which came with the support of the recovery of business activity outside the home and the end of the health crisis, as half of the company’s revenues before the pandemic were from events, Events and business ventures outside the home, such as selling soft drinks in movie theaters or restaurants. Read More [Coca-Cola’s First-Quarter Earnings Beat Expectations].

Earlier this July, arch rival PepsiCo posted a 13% growth in core sales in the second quarter as prices for its drinks and snacks soared, and PepsiCo executives said inflation would worsen in the second half of the year. Read more [Raising PepsiCo’s Revenue Aspirations While Raising Prices].

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