Coca-Cola (KO, $63,21) reported $11.3 billion in second-quarter revenue Tuesday, outpacing analysts’ estimates of $10.56 billion and growing 12% from the same period last year. It noted that commodity price inflation is expected to be steeper than previously forecast, and stuck by its outlook for comparable earnings per share to grow 5% to 6% from a year ago. Coca-Cola’s shares jumped 1.2% in the pre-market trading session, owing to the better-than-expected second-quarter 2022 results
Coke 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. Before the pandemic, the company generated about half of its revenue from away-from-home occasions, like soda purchases at movie theaters or restaurants. Sparkling soft drinks’ unit case volume improved 8% year over year, driven by robust gains across all geographic operating segments, led by India, Mexico and Brazil. Trademark Coca-Cola volumes were up 7% year over year on solid gains in all regions.
The company’s sports drink segment grew 7%, primarily attributed to the growth of BodyArmor and Powerade. After purchasing 15% of BodyArmor in 2018, the company acquired the brand’s remaining shares for $5.6 billion in November 2021. Coca-Cola’s earnings report is BodyArmor’s second full quarter under the brand.
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CEO James Quincey said the company is watching changes in consumer behavior and preparing for a more challenging economic environment. But he said the company isn’t yet seeing a significant pullback in spending, and that consumers in recessionary environments typically stop buying bigger ticket items before trying to save on lower-ticket purchases. It echoes the sentiment of rival Pepsi which also raised its prices but still saw demand stay steady for its soft drinks and snack goods.
