Atlanta: Coca-Cola has increased its full-year forecast, attributing the adjustment to a rise in global demand for its beverages in the second quarter. The company now predicts organic revenue growth of 9 percent to 10 percent for 2024, an increase from the previously forecasted 8 percent to 9 percent. Additionally, Coca-Cola has raised its outlook for comparable earnings growth to a range of 5 percent to 6 percent, up from the previous estimate of 4 percent to 5 percent.
For the second quarter, Coca-Cola reported earnings per share of 84 cents, adjusted, surpassing the 81 cents anticipated by analysts surveyed by LSEG. Revenue reached 12.36 billion dollars , exceeding the expected 11.76 billion dollars. The company posted a net income attributable to shareholders of 2.41 billion dollars, or 56 cents per share, a slight decrease from 2.55 billion dollars, or 59 cents per share, in the same period last year. Excluding certain costs and charges, the adjusted earnings were 84 cents per share.
Net sales rose by 3 percent to 12.36 billion dollars, while organic revenue, which excludes acquisitions, divestitures, and foreign currency impacts, increased by 15 percent during the quarter. Coca-Cola's unit case volume grew by 2 percent, driven by strong international market performance. However, in North America, volume decreased by 1 percent, primarily due to declining sales in water, sports drinks, coffee, tea, trademark Coca-Cola, and other soda brands. This decline was partially offset by growth in juice, dairy, and plant-based beverages.
To stimulate demand, Coca-Cola is collaborating with food service customers to market food and drink combo meals. Notably, Coca-Cola has partnered with McDonald’s, contributing marketing funds for the 5 dollar value meal, which includes a small soft drink, to enhance its appeal to franchisees.
Coca-Cola's sparkling soft drinks division, which includes its flagship soda, saw a global volume increase of 3 percent, driven by strong demand in Asia-Pacific and Latin America. The juice, dairy, and plant-based beverages segment reported a 2 percent volume growth, while the water, sports, coffee, and tea division experienced flat volume due to reduced demand for bottled water and declining Costa coffee sales in the UK.
The company also noted a 9 percent overall price increase compared to the previous year, with about half of this rise attributed to hyperinflation in markets such as Argentina.
Looking ahead to the third quarter, Coca-Cola anticipates that foreign currency fluctuations will negatively impact its results, projecting a 4 percent currency headwind to comparable net sales and an 8 percent headwind to comparable earnings per share.
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