Coca-Cola Co raised its full-year profit forecast on Wednesday, indicating that higher prices and demand for its soft drinks across the globe were helping it counter a profit squeeze from supply chain disruptions.
The beverage giant's shares rose 3% in premarket trading as it also beat estimates for third-quarter revenue and profit.
Coca-Cola's revenue surged 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, were up 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.
PepsiCo, which raised prices recently, said this month it would likely implement more hikes again early next year to overcome everything from a shortage of Gatorade bottles to a lack of truck drivers.
"While Coke is not immune to inflation, and could see more of it next year, improvements in its operations and new product innovation should help offset at least some of the impact from rising costs," Edward Jones analyst John Boylan said.
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, according to IBES data from Refintiv.
News by Reuters edited by Donna Ahern, Checkout. For more A Brands stories click here. Click subscribe to sign up for the Checkout print edition.