Coca-Cola beats on zero-sugar sodas, higher prices; to launch cane sugar-based drink
Food companies have rolled out plans to make changes in ingredients and include healthier substitutes amid Health Secretary Robert F. Kennedy Jr.'s Make America Healthy Again (MAHA) campaign.
The Fanta maker's move to launch a product this fall under its trademark Coca-Cola range comes days after President Donald Trump said last week the company agreed to use real cane sugar in the U.S.
Rival PepsiCo, which topped quarterly earnings estimates last week, also said it would use sugar in its products if consumers want it.
Coca-Cola's comparable revenue rose 2.5 per cent to $12.62 billion in the three months ended June 27, beating estimates of $12.54 billion, according to data compiled by LSEG.
"Amid a shifting external landscape in the second quarter, the ability of our system to stay both focused and flexible enabled us to stay on course in the first half of the year," CEO James Quincey said in a statement.
On Tuesday, the Sprite parent said the hit to its costs due to "global trade dynamics" remained manageable, as its operations were primarily local.
Coca-Cola has said it would look at affordable packaging options such as plastic bottles when President Trump imposed a 25 per cent duty on aluminum imports. As of June, tariffs on aluminum imports have doubled to 50 per cent.
Prices rose 6 per cent overall in the second quarter, led by increases in some inflationary markets, the company said, following a 5 per cent rise in the prior quarter.
Meanwhile, total case volumes fell about 1 per cent, compared with a 2 per cent rise in the preceding three-month period.
Coca-Cola Zero Sugar jumped 14 per cent, driven by growth across all geographies.
Excluding items, the company earned 87 cents per share, beating estimates of 83 cents.
Coca-Cola now expects fiscal 2025 comparable earnings per share to increase near the top end of its prior target of a 2 per cent to 3 per cent rise.
The Minute Maid maker's shares were last down 1 per cent in choppy premarket trading. They have risen 12.5 per cent so far this year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
40 minutes ago
- Business Times
STI, semiconductor stocks fall, as Genting, Sembcorp, SGX decline
[SINGAPORE] Shares of some Straits Times Index (STI) constituents and semiconductor firms fell on Friday (Aug 8), on the impact of earnings reports as well as the US-imposed tariffs kicking in. Sembcorp suffered the steepest decline of close to 14 per cent on Friday morning, down to S$6.65 as at 9.04 am from its open price of S$7.05. The group before the market opened had reported earnings that fell 1 per cent to S$536 million for the first half ended Jun 30, on the back of lower turnover from its gas business. The counter closed 13.9 per cent or S$1.08 lower at S$6.72 at the end of Friday. Genting Singapore was down as much as nearly 4 per cent, but subsequently declined 3.31 per cent to S$0.73 at 9.29 am. It fell to an intra-day low of S$0.725 at 10.01 am. The company had reported on Thursday after market close a H1 profit that fell 34 per cent to S$234.7 million, on weaker gaming and room revenue. It closed on Friday at S$0.745, down S$0.010 or 1.3 per cent. The shares of national carrier Singapore Airlines (SIA) fell by more than 4 per cent to S$6.52 at 9.06 am, while OCBC fell 2.46 per cent to S$16.67. Both companies went ex-dividend on Friday. Shares of SIA closed the day at S$6.53, down 4.4 per cent or S$0.30, while the local bank's shares ended 1.8 per cent or S$0.30 lower at S$16.79. SGX rose to S$16.58 at 9.05 am, but declined to S$16.26 by 10.37 am and closed 2 per cent or S$0.32 down at S$16.02. The Singapore bourse posted a 2.6 per cent decline in H2 net profit on Friday, although it reported its highest-ever full-year revenue and net profit since listing. The STI was down 0.61 per cent on Friday morning, and ended the day 0.4 per cent or 18.32 points lower at 4,239.83. Losers outnumbered gainers 344 to 190, after 1.3 billion securities valued at around S$2 billion changed hands. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The counters of a slew of semiconductor companies in Singapore also fell following US President Donald Trump's announcement on Thursday that he would slap a 100 per cent tax on imports of semiconductors produced outside the US. Overall higher US tariffs came into effect on Thursday, with duties at a baseline rate of 10 per cent for many countries, and between 15 and 41 per cent for others. UMS declined by more than 5 per cent, but pared those losses to stand at about 2 per cent down at S$1.49. The counter closed Friday 2.6 per cent lower at S$1.48. Frencken earlier also tumbled by over 5 per cent, but ended Friday 2.4 per cent to S$1.63. AEM lost as much as 4.5 per cent, and closed the day 3.2 per cent lower at S$1.52. Analysts had earlier predicted that Trump's announcement might affect semiconductor-related companies in Singapore and Malaysia. CGS International (CGSI) said in a Friday report that Frencken would be indirectly exposed through Dutch semiconductor giant ASML and US company Applied Materials, which supply equipment to the semiconductor industry. AEM is more directly affected because it ships to Intel – and Intel's main test and assembly is outside the US, CGSI noted. But it added that Intel might have room to negotiate as it has invested in the US. CGSI said: 'Eventually, the worst-case scenario over time is likely some demand destruction as customers, suppliers and consumers in the US all bear part of the higher tariff, so further tech innovation demand (resulting in new exciting tech products) is needed.' It added: 'The outlook for tech in H2 2025 remains muted as tariffs continue to render cautious and slow decision-making.' The Straits Times reported that the proposed tariff would weigh heavily on companies in Singapore that package semiconductors, and potentially those producing components and intermediate products that are part of the chip-supply chain. The semiconductor industry accounts for nearly 6 per cent of Singapore's gross domestic product, based on the Economic Development Board's 2025 data. Tech stocks in Malaysia already fell on Thursday when the news broke. It triggered declines in 71 technology counters on Bursa Malaysia. Last year, Malaysia exported nearly RM120 billion (S$36.4 billion) in electrical and electronics products to the US, accounting for a fifth of its total electrical and electronics exports. Semiconductor exports alone amounted to RM60.6 billion or about 20 per cent of Malaysia's total chip shipments.
CNA
an hour ago
- CNA
Tesla to streamline its AI chip design work, Musk says
Tesla will streamline its AI chip research to focus on its development of inference chips used to run AI models and make real-time decisions, CEO Elon Musk said, after a media report he had ordered the closure of the in-house Dojo supercomputer team. Bloomberg News on Thursday cited people familiar with the matter as saying Musk had ordered the Dojo team to be disbanded, with team leader Peter Bannon departing the company. Tesla did not reply to a Reuters request for comment. The Dojo supercomputer was designed around custom training chips to process vast amounts of data and video from Tesla EVs to train the automaker's autonomous-driving software. "It doesn't make sense for Tesla to divide its resources and scale two quite different AI chip designs," Musk said in an X post late on Thursday. "The Tesla AI5, AI6 and subsequent chips will be excellent for inference and at least pretty good for training. All effort is focused on that," he said, without directly mentioning Dojo. Tesla has been undergoing a wide-ranging restructuring over the past year, with its share price slumping as sales of its EVs were hit by rising competition and a backlash by European consumers in particular against Musk's political views. The company has seen multiple executive departures and cut thousands of jobs, and redirected its focus to AI-driven self-driving technology and robotics, with Musk pursuing an integration strategy across his tech business empire. Musk has previously said that next-generation AI5 chips would be produced at the end of 2026 and announced last month a $16.5 billion deal to source AI6 chips from Samsung Electronics, without providing a production timeline. He has said that future AI inference chips, including AI6, would be deployed in self-driving vehicles and its Optimus humanoid robots, though he has noted the substantial computing power could enable broader AI applications. The Dojo team recently lost about 20 workers to newly-formed DensityAI, and the remaining workers are being reassigned to other data center and compute projects within Tesla, the Bloomberg report said.
CNA
2 hours ago
- CNA
Intel CEO Tan Lip-Bu says he is working with US government to clarify concerns after Trump demands resignation
SINGAPORE: Intel CEO Tan Lip-Bu said that his company is working with the United States administration after President Donald Trump demanded his resignation. "We are engaging with the administration to address the matters that have been raised and ensure they have the facts," Tan said in a note sent to all Intel Corporation employees on Thursday (Aug 7). Trump had on Thursday demanded that Tan resign "immediately" after Republican Senator Tom Cotton raised national security concerns over his links to firms in China. Cotton alleged that Tan controls dozens of Chinese companies and holds stakes in hundreds of Chinese advanced manufacturing and chip firms. The US senator also noted Tan's role as the previous head of Cadence Design Systems, which he said recently "pleaded guilty to illegally selling its products to a Chinese military university". While serving in that role, Cotton said that Tan transferred "its technology to an associated Chinese semiconductor company without obtaining licences". In his note, Tan, a Malaysia-born tech industry veteran, said that there has been "a lot of misinformation" about his previous roles at Walden International and Cadence Design Systems. "I want to be absolutely clear: Over 40+ years in the industry, I've built relationships around the world and across our diverse ecosystem - and I have always operated within the highest legal and ethical standards," Tan said. "My reputation has been built on trust - on doing what I say I'll do, and doing it the right way. This is the same way I am leading Intel." In 1987, Tan founded venture capital firm Walden International. From 2009 to 2021, he was the CEO of Cadence Design Systems, a chip design software firm. Tan was raised in Singapore and is now a naturalised American citizen. Tan said that the US has been his home for more than 40 years and he is "profoundly grateful for the opportunities it has given" him. Intel's success is essential to US technology and manufacturing leadership, national security and economic strength, Tan added. "I fully share the president's commitment to advancing US national and economic security," he said. "I appreciate his leadership to advance these priorities, and I'm proud to lead a company that is so central to these goals." Tan also said that the Intel board is "fully supportive" of the work that his team does to transform the chip maker company. He said: "It's especially exciting to see us ramping toward high-volume manufacturing using the most advanced semiconductor process technology in the country later this year." "It will be a major milestone that's a testament to your work and the important role Intel plays in the US technology ecosystem," Tan said.
