Coca-Cola increased its expectations for organic sales and profits this year on Tuesday, indicating that consumers are prepared to pay more for the company's more expensive juices, energy drinks, and sodas, particularly in foreign countries.

In premarket trading, the company's shares increased by about 1%, and it also revealed a surprising gain in quarterly sales. To maintain its revenue growth, Coca-Cola has been expanding into more recent locations in Asia and Europe and introducing reformulated versions of its beverages, such as Coke Spiced and Georgia Coffee, in markets where consumers are becoming more price conscious.

The manufacturer of Sprite reported that while unit case volumes increased by 2%, the company's average selling price increased by 9% in the second quarter. However, as customers continue to be frugal with their spending, Coca-Cola saw a 1% decline in volume in the North American region.

In July, PepsiCo CEO Ramon Laguarta stated that price sensitivity is considerably more prevalent among all American socioeconomic categories, not only those with low incomes. Rival PepsiCo, headquartered in New York, failed second-quarter revenue projections due to declining sales of its snacks and soda, mostly in the US, as a result of ongoing price increases and competition from private-label brands.

Coca-Cola updated its prediction for fiscal 2024 organic revenue, which was previously expected to increase by 8% to 9%, to a range of 9% to 10%. The business revised its projection from a 4% to 5% increase in adjusted earnings to between a 5% and 6% increase in fiscal 2024.

Coca-Cola surpassed LSEG projections of $11.76 billion with a 2.9% increase in net revenue to $12.31 billion in the second quarter. In contrast to projections of 81 cents per share, the company earned 84 cents on an adjusted basis.