Coca-Cola on Tuesday raised its full-year outlook as global demand for its drinks rose in the second quarter.
For 2024, Coke now expects organic revenue growth of 9% to 10%, up from its prior forecast of 8% to 9%. The company also raised its outlook for comparable earnings growth to a range of 5% to 6% from a previous range of 4% to 5%.
Shares of the company rose about 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 84 cents adjusted versus 81 cents expected
- Revenue: $12.36 billion versus $11.76 billion expected
Coke reported second-quarter net income attributable to shareholders of $2.41 billion, or 56 cents per share, down from $2.55 billion, or 59 cents per share, a year earlier.
Excluding restructuring costs, charges related to the value 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 strips out acquisitions, divestitures and foreign currency, climbed 15% in the quarter.
Coke’s unit case volume rose 2% for the quarter, helped by its international markets. The metric strips out the impact of pricing and foreign currency to reflect demand.
But in North America, volume fell 1% for the quarter. Coke said North American volume declined for its water, sports, coffee tea, trademark Coca-Cola and other soda brands, offsetting growth for its juice, dairy and plant-based beverages. Coke’s rival PepsiCo reported earlier this month that the U.S. consumer has weakened, hurting demand for its own drinks and snacks.
Coke’s sparkling soft drinks division, which includes its namesake soda, saw its global volume rise 3%, thanks to strong demand in the Asia Pacific and Latin America regions. Its juice, dairy and plant-based beverages business reported volume growth of 2%. And the water, sports, coffee and tea division saw flat volume, hurt by shrinking demand for bottled water and falling Costa coffee sales in the United Kingdom.
Coke’s overall prices were up 9% compared with the year-ago period, but about half of that came from hyperinflation in certain markets, like Argentina.
For the third quarter, Coke anticipates that foreign currency will again drag on its results. The company is forecasting a 4% currency headwind to its comparable net sales and an 8% currency headwind to its comparable earnings per share.