COCA-COLA raised its annual revenue and profit forecast on Wednesday (Jul 26), betting on higher pricing and resilient demand for its sodas, especially its namesake drink and Sprite.

The company’s shares rose about 1 per cent in premarket trading.

When supply chain snags and the Russia-Ukraine conflict pushed prices of everything from commodities like sugar to transport higher, many consumer goods companies including Coca-Cola hiked prices of its products to offset the impact from these rising costs.

Still, consumers have been steadily spending on sodas and snacks even though rising interest rates and food prices hammer non-essential spending in a difficult economy.

Coca-Cola’s average selling prices rose 10 per cent in the second quarter, while unit case volumes remained flat.

The company now expects organic revenue growth of 8 per cent to 9 per cent for the full year, compared with a prior forecast of an increase of 7 per cent to 8 per cent.

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Coca-Cola forecast full-year core earnings per share to rise between 5 per cent and 6 per cent, compared with prior expectations of an increase of 4 per cent to 5 per cent. REUTERS