Coca-Cola Co.
said third-quarter sales and profit surpassed expectations and the beverage giant raised its guidance for the year, as the company got a boost from value-conscious products amid soaring inflation.The Atlanta-based soft-drink maker, whose beverages include Fanta sodas, Minute Maid juices and Powerade sports drinks, said Tuesday that it benefited from bundling different sizes and mixes of its products for inflation-wary consumers.The company said it now sees organic revenue growth of 14% to 15% for the full year.
In July, Coca-Cola increased its full-year outlook from 12% to 13%.
Coca-Colas adjusted operating revenue was $11.1 billion in the quarter ended Sept.
30, beating the $10.51 billion Bloomberg consensus.The increased outlook for the year shows that Coca-Cola is maintaining demand with help from items like the Coca-Cola Value Bundle, which offers customers beverage options at more affordable prices.When you segment the population, there are certain groups that are going to be under more pressure than others, Chief Financial Officer John Murphy said in an interview.
Its an opportunity to offer them solutions at a price point that will be effective to them.Key competitor PepsiCo Inc.
also increased its organic revenue growth projection, to 12% from 10%, earlier this month.Coca-Cola said its seeing strong results from its ready-to-drink alcohol beverages, which include Fresca Mixed, Topo Chico hard seltzers, and Schweppes cocktail mixers and tonics.The company said consumers were continuing to return to public venues such as theaters, stadiums and restaurants, and that freight costs in some parts of the world, such as China, have declined.
I think there has been a reduction in both the container costs and a reduction in demand, Murphy said.
But within the US, he said, fuel and labor shortages continue to keep freight transportation costs high.
We will continue to see relatively high costs for trucking, he said.Coca-Colas organic revenue, which excludes the impact of currency shifts and acquisitions, increased by 16% in the third quarter.
Analysts had expected a 9.8% increase.The shares rose 0.6% in premarket trading.
The stock has declined 2.8% so far this year through Mondays close -- better than the 20% tumble of the S-P 500 Index.