Coca-Cola (KO) Q2 2022 earnings

Coca-Cola on Tuesday reported quarterly earnings that topped expectations as the beverage giant’s sales at restaurants, theaters and other venues recovered from the pandemic.

Here’s what the company reported, versus what Wall Street analysts surveyed by Refinitiv were expecting:

• Adjusted earnings per share: 70 cents, versus 67 cents expected
• Adjusted revenue: $11.3 billion versus $10.56 billion expected

The Atlanta-based maker of Sprite, Dasani and Minute Maid said it now expects organic revenue growth of 12% to 13%. Its previous guidance was for growth of 7% to 8%. But the company also said commodity price inflation is now expected to a high-single digit percentage headwind, after previously saying it expected it to be a mid-single digit headwind.

For the three months ended July 1, net income was $1.91 billion, or 44 cents per share. A year ago, it was $2.64 billion, or 61 cents per share.

Coca-Cola said its revenue in the second-quarter increased 12% from a year ago on higher pricing and an increase in global case volume, which was driven by recovery in its away-from-home business. Before the pandemic, Coca-Cola generated about half of its revenue from away-from-home occasions, like soda purchases at movie theaters or restaurants.

The company has raised prices to manage higher costs on freight, high fructose corn syrup and aluminum. But CEO James Quincey said in April that the company knows that consumers won’t swallow inflation endlessly.

Earlier in July, rival PepsiCo reported organic sales growth of 13% during its second quarter, fueled largely by higher prices for its snacks and drinks. Pepsi executives said that they expect inflation to worsen in the second half of the year.

Shares of Coke were up about 1% at $62.79 in pre-market trading.