Coke raised its full-year outlook on Tuesday as global demand for its beverages rose within the second quarter.
For 2024, Coca-Cola now expects organic sales growth of 9 to 10 percent, in comparison with the previous forecast of 8 to 9 percent. The company also increased its forecast for comparable earnings growth from 4 to five percent to five to six percent.
“Our updated 2024 guidance reflects the momentum of our business in the first half of the year and our confidence in our ability to execute on our plans in the second half of the year,” CFO John Murphy said on Coca-Cola’s conference call.
The company’s shares rose about 1 percent in morning trading.
Here is what Coca-Cola reported for the second quarter in comparison with Wall Street expectations, based on an LSEG analyst survey:
- Earnings per share: 84 cents adjusted in comparison with 81 cents expected
- Revenue: $12.36 billion in comparison with expected $11.76 billion
Coca-Cola reported net profit attributable to shareholders of $2.41 billion, or 56 cents per share, within the second quarter. In the identical period last yr, the corporate had earned $2.55 billion, or 59 cents per share.
Excluding restructuring costs, charges related to the worth of the Fairlife milk brand and other items, the beverage giant earned 84 cents per share.
Net sales rose 3% to $12.36 billion. Organic revenue, which excludes acquisitions, divestitures and foreign currency movements, rose 15% within the quarter.
Coca-Cola grew its case volume by 2% within the quarter, partly as a result of international markets. The metric eliminates the impact of pricing and foreign currency to reflect demand.
However, volume in North America fell 1% within the quarter. Coca-Cola said North American volume declined in water, sports drinks, coffee, tea, Coca-Cola and other soda brands, offsetting growth in juice, dairy and plant-based beverages. Coca-Cola’s competitor PepsiCoreported earlier this month that US consumers were weak, which had affected demand for its own beverages and snacks.
Coca-Cola CEO James Quincey blamed weak take-out sales for the decline in North American case numbers. To boost demand, Quincey said Coca-Cola is working with foodservice customers to launch food and drinks combo meals.
CNBC previously reported that Coca-Cola donated marketing money to McDonald’s for its $5 menu, which incorporates a small soft drink, to make it more attractive to franchisees who otherwise shrink back from deep discounts.
Coca-Cola’s carbonated soft drinks division, which incorporates the lemonade of the identical name, saw global sales increase by 3 percent due to strong demand within the Asia-Pacific region and Latin America. The Juices, Dairy and Plant-Based Beverages business reported volume growth of two%. And the water, sports, coffee and tea divisions saw flat sales, hit by falling demand for bottled water and falling Costa coffee sales within the UK.
Coca-Cola’s overall prices rose 9 percent in comparison with the identical period last yr, but about half of that increase was as a result of hyperinflation in certain markets resembling Argentina.
Coca-Cola expects negative currency effects again for the third quarter. The company expects a negative currency effect of 4% on comparable net sales and eight% on comparable earnings per share.
