Coca-Cola Co (NYSE:KO) stock rose 0.35% (As on July 24, 11:22:56 AM UTC-4, Source: Google Finance) after the company is raising its full-year sales guidance after a stronger-than-expected second quarter boosted by continued price increases. Coke, which hiked prices 13% in the first quarter, raised them 9% in the April-June period. The company said that was partly due to hyperinflation in some markets, including Argentina and Nigeria. Coke has raised prices every quarter since the end of 2020. Coca-Cola Chairman and CEO James Quincey defended the price hikes. In North America, where Coke’s prices rose 11%, about half of the increase was due to sales of more expensive beverages like Topo Chico mineral water and Fairlife milk, Quincey said. The other half was due to straight price hikes. But price increases appear to be hurting demand at home, where North American unit case volume sales fell 1%. Coke saw lower North American demand for water, sports drinks, sparkling sodas, coffee, tea and its trademark Coca-Cola beverages. Quincey said the company saw some softness in away-from-home demand at places like restaurants and movie theaters.

KO in the second quarter of FY 24 has reported the adjusted earnings per share of 84 cents, beating the analysts’ estimates for the adjusted earnings per share of 81 cents. The company had reported the adjusted revenue growth of 3 percent to $12.4 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $11.8 billion, according to Analysts polled by FactSet. The organic revenues (non-GAAP) grew 15%. Revenue performance included 9% growth in price/mix and 6% growth in concentrate sales. Concentrate sales were 4 points ahead of unit case volume, primarily due to the timing of concentrate shipments. Operating margin, which includes items impacting comparability, was 21.3% versus 20.1% in the prior year, while comparable operating margin (non-GAAP) was 32.8% versus 31.6% in the prior year. Operating margin expansion was primarily driven by strong business performance and the impact of refranchising bottling operations, partially offset by currency headwinds and an increase in marketing investments.

Additionally, Cash flow from operations was $4.1 billion, a decrease of $516 million versus the prior year, largely due to higher tax payments and cycling working capital benefits from the prior year. Free cash flow was $3.3 billion, a decrease of $693 million versus the prior year

The company now expects organic sales to grow between 9% and 10% this year, up from 8% to 9% previously.