Soft drinks manufacturer Coca-Cola (KO:NYSE) once again demonstrated its ability to offset surging input costs with price increases in its second quarter results (26 July).

The company raised its full-year revenue growth forecast by a material amount despite increased costs for aluminium cans and corn syrup.

Coca-Cola now expects organic revenue to increase 12% to 13% in 2022 compared with previous expectations for a 7% to 8% increase.

The latest quarter saw net revenue rise 12% to $11.3 billion compared with the $10.55 billion pencilled in by analysts.

Unlike big ticket items, which are proving difficult to shift given cost of living pressures, it seems people are far less likely to cut back on impulse purchases like a can of Coke, even if they have to pay a bit more.

The appeal of Coke’s core brands with consumers also means they are far less likely to trade down to cheaper alternatives.

The resilience of the business has been reflected in its share price performance so far in 2022. Its shares are up nearly 5% year-to-date compared with a fall of more than 17% for the S&P 500.

Based on consensus forecasts, the shares trade on a forward price to earnings multiple of a little more than 24 times.

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