(Reuters) -Coca-Cola is aiming to hit the higher end of its organic sales forecast for 2024 as growing demand for its higher-priced sodas and juices in the U.S. helped it post a surprise rise in third-quarter sales on Wednesday.
The beverage company has been experimenting with pack sizes to drive growth. It offered 12-ounce slim cans to attract customers with tight budgets in the U.S., while launching reformulated versions of its Sprite and Fanta in India and South Korea.
North America revenue rose 12% and it expects annual organic sales to grow about 10% compared with a prior view of 9% to 10% rise. Its average selling price rose 10%, while unit case volumes fell 1%.
Shares of the company, however, slipped 0.5% in premarket trading as Coca-Cola (NYSE:KO) reiterated its growth forecast for annual adjusted profit of 5% to 6% despite price hikes.
“The weakness of the stock a little bit here is that they’re leading more on price … (while) guidance is just being maintained here,” said Christian Greiner, senior portfolio manager at F/m Investments, which owns shares in Coca-Cola.
Investors were expecting growth in volumes, which was impacted by price-conscious consumers in the Middle East and China, he said.
Coca-Cola’s revenue in Europe, the Middle East and Africa fell 7% and in the Asia Pacific region it dropped 4%.
Earlier this month, rival PepsiCo (NASDAQ:PEP) CEO Ramon Laguarta said price increases and borrowing costs were hurting consumer budgets. The Frito-Lay chips maker cut its annual sales forecast after posting quarterly revenue below expectations.
Coca-Cola’s net revenue rose 0.3% to $11.95 billion. Analysts had expected a 2.62% drop to $11.60 billion, according to data compiled by LSEG.
The company’s adjusted profit came in at 77 cents per share, compared with estimates of 74 cents.
