The reopening of theatres, restaurants and stadiums is giving Coca-Cola hope to achieve higher full-year sales and revenue. On Wednesday, the beverage company raised its forecast as it notes a rebound in overall revenue.
Coca-cola finally sees a sign of relief after the shutdowns of public venues. This further led to a significant drop in the sales of its products. However, the world’s largest soda maker noted a 3% rise in early trading today.
Coca-Cola reported a 28% surge in revenues in the second quarter for its North American market, which also acts as the company’s biggest market. Accelerated vaccination, which further led to reopening and easing of capacity restrictions, is helping Coca-Cola record bigger sales across the United State.
The company also recorded a surge in its adjusted overall revenue in Europe, Asia and Latin America due to reopening economies. Coca-Cola’s adjusted overall revenue inclined by 4.1% in the reported quarter to $10.13 billion. This figure exceeds analysts’ average estimate at $9.32 billion, IBES data from Refinitiv shows.
Upon this, the Chief Executive Officer of Coca-Cola, James Quincey, said in a statement, “our results in the second quarter show how our business is rebounding faster than the overall economic recovery,” Reuters quotes.
This comes after a 28% slump in total net revenue in the last year-quarter caused by the lockdowns.
Meanwhile, the rival of Coca-Cola, PepsiCo Inc, reported a 20.5% surge in second-quarter revenue last week. PepsiCo managed to record an incline in its revenue due to its lesser dependence on sales to restaurants and bars.
Still, Coca-Cola insisted that resurgence in COVID-19 infections could have pressured the volumes.
Coca-Cola aims for higher target in revenue
Coca-Cola is raising its annual organic revenue target. The beverage company now expects the annual organic revenue to grow around 12% to 14%.
Additionally, the company hopes to record around a 13% to 14% rise in its annual adjusted earnings per share. These numbers are comparably higher from the high single digits increase estimates proposed before.
For the second quarter ended July 2, Coca-Cola reported that the net income attributable to company shareholders grew 48% to $2.64 billion. Except for one-time items, Coca-Cola generated 68 cents per share, exceeding expectations at 56 cents.