Coca-Cola Co. stock rose to a 12-year high after the company's earnings report showed sales resilience in most parts of the world, from tsunami-rocked Japan to debt-jittery southern Europe.
Worldwide beverage sales rose 6 percent in the second quarter, Coke reported. Revenue rose 47 percent to $12.7 billion, though most of that reflected the acquisition of Coca-Cola Enterprises' North American bottling operations last year. Higher sales of soft drink concentrate and a cheaper dollar also helped.
Net profit rose 18 percent to $2.8 billion or $1.20 per share.
Shares gained 3.3 percent to $69.32, a level not seen since June 1999.
"Coke reported a solid (second quarter) result," said Credit Suisse analyst Carlos Laboy, noting that earnings per share beat Wall Street's expectations by a penny.
The company said it managed to raise average prices by 1 to 2 percent in North America and still plans to raise prices by 3 to 4 percent in the second half of the year to offset higher commodity costs.
Sales volume rose 4 percent in North America, although the growth came from cross-licensed brands such as Dr Pepper rather than the company's own products. Coke Zero's volume rose 12 percent, marking 21 consecutive quarters of growth for the brand in North America.
"We are a business that's built for times like these," chief executive Muhtar Kent told CNBC. "We can manage through this labyrinth today of (higher) input costs as well as a mixed recovery."
In an interview with The Atlanta Journal-Constitution, Kent cited a weak economic recovery in the United States, with consumers nervous about unemployment and high prices for food and gasoline.
Excluding cross-licensed brands, the company's sales of carbonated drinks slipped 1 percent in North America, although Coca-Cola said it gained market share. The juice category was soft as Coca-Cola raised prices, and the sales volume of the company's non-carbonated drinks grew 1 percent in North America.
Around the world, Coca-Cola is notching an increasing the number of transactions in which consumers grab chilled beverages from fountains or coolers, something executives call "immediate consumption."
"Despite the fact that people are not going out as much, eating out as much, we are growing immediate consumption," Kent said. "That is part of a huge program -- a huge, important strategy."
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