Coca-Cola gets boost from rising soda demand, lifts profit forecast

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The beverage giant’s shares rose 3% in premarket trading as it also beat estimates for third-quarter revenue and profit.

Coca-Cola (NYSE:KO)’s revenue rose 16% to $10.04 billion in the quarter, as the reopening of public venues such as theaters, stadiums and restaurants across the world led to a rebound in demand for its soft drinks.

Unit case volumes, a key indicator of demand, rose 6% in the reported quarter, with Europe, Middle East, Africa and Latin America markets being their major drivers.

The average value of products sold also rose 6%, after Coca-Cola raised prices to counter some of the impact from surging commodity and freight costs created by clogged shipping ports, a labor shortage and the pandemic.

Coca-Cola expects its annual adjusted earnings per share to rise 15% to 17%, compared with a prior forecast of a 13% to 15% increase.

On an adjusted basis, the company earned 65 cents per share in the third quarter, beating analysts’ estimates of 58 cents per share, according to IBES data from Refintiv.