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Key Takeaways
- Coca-Cola exceeded second-quarter profit and sales estimates and increased its guidance as unit volume and prices rose.
- Sales were up 20% year-over-year in Latin America, 10% in North America, and 7% in the Europe, Middle East & Africa region. They fell 4% in the Asia Pacific region.
- Coca-Cola boosted its full-year outlook for comparable EPS and organic revenue growth.
Shares of Coca-Cola (KO) advanced Tuesday as the world’s biggest soft-drink maker posted better-than-expected results and raised its outlook on higher demand and prices.
The company reported second-quarter adjusted earnings per share (EPS) of $0.84, with revenue increasing 3% year-over-year to $12.36 billion. Both exceeded consensus estimates of analysts compiled by Visible Alpha.
Overall case unit volume rose 2%. The company got a big boost from the Latin America region, where sales jumped 20% and volume was up 5%. The company credited that to growth in Mexico and Brazil, and soaring inflation in Argentina.
Sales climbed 10% in North America, driven by favorable mix and pricing actions. However, volume fell 1% because of declines in water, sports, coffee, and tea, as well as Trademark Coca-Cola and sparkling flavors. Sales in the Europe, Middle East & Africa region added 7%, but volume was unchanged. Asia Pacific sales fell 4%, although volume was 3% higher.
CEO Says Company Performed Well in ‘Ever-Changing Landscape’
Chief Executive Officer (CEO) James Quincey said the company performed well in “an ever-changing landscape,” and that it continues to execute “our highly effective all-weather strategy” aimed at responding effectively to unusual weather conditions.
Coca-Cola now expects full-year comparable EPS to climb 5% to 6% compared with its earlier forecast of 4% to 5%. It sees organic revenue growth of 9% to 10%, up from the earlier outlook of 8% to 9%.
Coca-Cola shares were up trading about 1% higher at 11 a.m. ET Tuesday at $65.20, their highest level in two years.