Coca Cola The company on Tuesday raised its full-year forecast as global demand for its beverages increased in the second quarter.
Coca-Cola now expects organic revenue to grow 9% to 10% in 2024, up from its previous forecast of 8% to 9%. The company also raised its comparable profit growth forecast to 5% to 6% from the previous forecast of 4% to 5%.
The company’s shares rose about 1% in premarket trading.
This is what the company reported Compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: 84 cents adjusted, vs. 81 cents expected
- Revenue: $12.36 billion, $11.76 billion expected
Coca-Cola reported second-quarter net profit to shareholders of $2.41 billion, or 56 cents a share, down from $2.55 billion, or 59 cents a share, in the same period last year.
Excluding restructuring costs, charges related to the value of the Fairlife milk brand and other items, the drinks giant earned 84 cents a share.
net sales grew 3% to $12.36 billion. Organic revenue, which excludes acquisitions, divestitures and foreign exchange, grew 15% in the quarter.
Coca-Cola’s unit case sales increased 2% this quarter due to international markets. The metric strips out the impact of pricing and foreign currencies to reflect demand.
But in North America, sales fell 1% this quarter. Coca-Cola said sales of its water, sports drinks, coffee tea, trademark Coca-Cola and other soda brands in North America were down, offsetting growth in juices, dairy and plant-based beverages. Coca-Cola’s competitors Pepsi It was reported earlier this month that U.S. consumer weakness was hurting demand for its drinks and snacks.
Global sales of Coca-Cola’s sparkling soft drinks unit, which includes its namesake soda, rose 3% on strong demand in Asia Pacific and Latin America. Sales volume in its juice, dairy and plant-based beverage businesses grew 2%. Sales in the water, sports, coffee and tea divisions were flat, hurt by shrinking demand for bottled water and lower sales of Costa Coffee in the UK.
Coca-Cola’s overall price is up 9% compared with the same period last year, but about half of that comes from hyperinflation in some markets, such as Argentina.
Coca-Cola expects foreign exchange rates to weigh on its results again in the third quarter. The company expects its comparable net sales to face currency headwinds of 4% and its comparable earnings per share to face currency headwinds of 8%.
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