Coca-Cola Raises Profit Forecast

Coca-Cola ($KO@US) raised its full-year profit forecast on Wednesday. The world’s largest beverage company has been increasing prices because of the supply chain shortage, but that has only served to increase its profits as demand for its vast array of products remains high. Revenue for the company rose 16% to around $10 billion in the last quarter, surging with the help of reopening theaters, sporting venues, and the like. Unit case volumes were up across the globe from Europe to the Middle East, Africa, and Latin America. As prices increased, the average value of Coca-Cola products sold jumped 6%. John Boylan, an analyst with Edward Jones, noted that, “While Coke is not immune to inflation, and could see more of it next year, improvements in its operations and new product innovation should help offset at least some of the impact of rising costs.” Coke may be one of the first companies to raise prices and see positive results, but others may follow suit. PepsiCo ($PEP@US), for example, has raised prices due to a lack of Gatorade bottles and truck drivers. Unilever and Procter & Gamble ($PG@US) also warned that prices were likely to jump in the near future. Even so, Coke stock earned 65 cents per share, 7 cents higher than estimated, but shares fell nearly 1 and a half percent in early trading.