US drinks giant Coca-Cola today reported double-digit revenue growth in the third quarter thanks to higher prices that did not hurt demand. Coca-Cola and PepsiCo have no serious competition in the world market for carbonated drinks, so they raised prices this year, estimating that their products will be among the last to feel the pressure during the period of economic slowdown.
Coca-Cola reported today that the average selling price of its products in the third quarter increased by 12 percent and concentrate sales by four percent.
The company closed the three-month period ending in September with a 10 percent higher net income of $11.1 billion. Excluding the unfavorable impact of the stronger dollar, it rose 16 percent.
Earnings per share rose seven percent to 65 cents. Excluding currency effects, it rose 14 percent to 69 cents. At Coca-Cola, they expect their revenue to grow 14 to 15 percent this year, after excluding the impact of the stronger dollar. Until now, they expected growth of 12 to 13 percent.
Adjusted earnings per share should rise by six to seven percent, which is a percentage point stronger than previously forecast, noting that the estimate includes the negative impact of the stronger dollar.
PepsiCo also raised its annual revenue forecasts in October after strong revenue growth in the third quarter. Consumer goods giants Nestle and Procter&Gamble also reported strong results as shoppers are willing to pay more for goods such as coffee and razors.