Source Credit : Portfolio Prints
Coca-Cola reported stronger-than-expected second-quarter earnings and revenue on Tuesday, driven by robust consumer demand across its beverage portfolio. The company also raised its full-year outlook, reflecting confidence in its growth momentum.
The beverage giant now expects comparable earnings per share to grow between 9% and 10% this year, up from its previous forecast of 8% to 9%. Coca-Cola also projects organic revenue growth of around 5%, the upper end of its earlier guidance range of 4% to 5%.
Investors welcomed the results, sending Coca-Cola shares more than 3% higher in pre-market trading.
For the quarter, Coca-Cola reported adjusted earnings of 97 cents per share, surpassing analysts’ expectations of 93 cents per share. Revenue came in at $13.38 billion, ahead of the $13.16 billion forecast by analysts surveyed by LSEG.
Net income rose to $4.43 billion, or $1.03 per share, compared with $3.81 billion, or 89 cents per share, in the same period last year. Excluding asset impairments, restructuring expenses and other one-off items, adjusted earnings stood at 97 cents per share.
Net sales increased 7% year-on-year to $13.38 billion, while organic revenue—which excludes the effects of acquisitions, divestitures and currency movements—grew 6% during the quarter.
Demand remained strong across Coca-Cola’s global operations, with unit case volume rising 5%. All reporting segments recorded volume growth, highlighting broad-based consumer demand beyond the impact of pricing changes.
Chief Executive Henrique Braun described the consumer environment as “dynamic,” noting that shoppers continue to navigate inflationary pressures, geopolitical uncertainty and broader economic challenges. His comments came after rival PepsiCo reported weaker U.S. sales as consumers tightened spending on snacks and beverages.
Despite concerns about consumer spending, Coca-Cola’s performance showed little evidence of demand weakening. North American volumes increased 3% during the quarter, underscoring the resilience of the company’s brands.
The company credited its global FIFA World Cup marketing campaign for helping drive demand. Coca-Cola’s flagship soft drink recorded a 5% increase in volume—its strongest quarterly growth in 17 years, excluding the pandemic period—while Powerade volumes rose 8%.
Coca-Cola’s water, sports drinks, coffee and tea segment emerged as the strongest-performing category, delivering 6% volume growth. All categories within the segment, except coffee, posted higher volumes during the quarter.
The sparkling soft drinks division reported 4% volume growth, supported by strong demand for Coca-Cola and its product extensions. Coca-Cola Zero Sugar recorded a 16% increase in volume, while Diet Coke, known as Coca-Cola Light in some markets, grew 7%.
The relaunch of Mr. Pibb with 30% more caffeine also boosted performance, helping the brand achieve a 20% increase in volume during the quarter, according to Braun.
Meanwhile, Coca-Cola’s juice, value-added dairy and plant-based beverages segment delivered 2% volume growth, rounding out another quarter of broad-based expansion across the company’s portfolio.
