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Investing.com – Coca-Cola (NYSE:KO) shares were trading a tad higher in pre-market after the company repeated its forecast for a high-single digit revenue growth in 2021 despite fading support from currency factors.
The soft drinks giant now expects foreign exchange factors to add between 1% and 2% to per share earnings in the current fiscal year, as against 2% to 3% earlier. Coca-Cola expects to deliver comparable EPS growth of around 10% versus $1.95 in 2020.
The market seemed to be absorbing the company’s performance in the last quarter as “the path to recovery, however, remains asynchronous around the world.”
The company’s underlying effective tax rate is now estimated to be 19.1%, lower than 19.5% forecast in January.
Net revenue grew 5% to $9 billion for the quarter ended April 2, aided by higher sales of concentrates and better pricing.
The company said March volume was back to 2019 levels with growth in at-home consumption being offset by continued weakness in other distribution channels. Solid growth in trademark Coca-Cola, sparkling flavors and the nutrition, juice, dairy and plant-based beverages category was offset by pressure in the hydration category during the quarter.
