Coca-Cola raises sales guidance after stronger-than-expected second quarter

Coca-Cola is raising its full-year sales guidance after a stronger-than-expected second quarter boosted by continued price increases.

The Atlanta beverage giant said it expects organic sales to grow between 9% and 10% this year, up from 8% to 9% previously.

Revenue rose 3% to 12.4 billion dollars for the April-June period. That was higher than Wall Street anticipated. Analysts polled by FactSet were expecting revenue of 11.8 billion dollars.

Coke, which hiked prices by 13% in the first quarter, raised them by 9% in the April-June period. The company said that was partly due to hyperinflation in some markets, such as Argentina.

But price increases appear to be hurting demand at home.

North American unit case volume sales fell 1% after Coke raised prices 11% in the market.

Coke said growing sales of juice, dairy and plant-based drinks were offset by falling demand for water, sports drinks, sparkling sodas and trademark Coca-Cola.

In the Asia Pacific region, where Coke lowered prices by 3%, unit case volume sales were up 3%.

Coca-Cola’s net income fell 5% to 2.4 billion dollars or 56 cents per share. Adjusted for one-time items, including currency fluctuations, Coke earned 84 cents per share. That also beat Wall Street’s forecast of 81 cents.

Before the opening bell, shares of The Coca-Cola Co rose more than 1%.

Coke’s results were a contrast with rival PepsiCo, which tightened its full-year organic revenue guidance earlier this month after posting weaker-than-expected revenue in the second quarter.

But unlike Coke, PepsiCo sells snack foods like Frito-Lay chips. Demand for those products has begun to fall after several years of price increases.