Coca-cola earnings, revenue beat expectations, cane sugar soda to hit US market
The company posted net income of US$3.81 billion, or US$0.88 per share, up from US$2.41 billion or US$0.56 per share, a year ago. Excluding one-time charges and restructuring costs, adjusted earnings came in at US$0.87 per share in Q2, topping analyst expectations of US$0.83, according to London Stock Exchange Group data.
Adjusted revenue reached US$12.62 billion in the quarter ending June 27, above the expected US$12.54 billion.
Global unit case volume fell 1 per cent, signalling a decline in actual demand when pricing effects are stripped out. Every business segment saw shrinking volumes, except for Europe, the Middle East and Africa.
Coca-Cola CEO James Quincey acknowledged that economic uncertainty and geopolitical tensions have dented consumer sentiment in some markets. But he also noted sequential improvements in demand in key regions such as the United States (US) and Europe compared to the first quarter.
The company now plans to introduce a version of its namesake cola made with cane sugar in the US this autumn, which was also announced Tuesday. The move marks a reversal of the 1980s switch to high-fructose corn syrup, which had been driven by cost-saving efforts.
The move is expected to increase manufacturing expenses and shorten product shelf life. The company already sells a cane sugar variant, which is often called "Mexican Coke" in the US market.
The company narrowed its full-year growth forecast of earnings per share to 3 per cent, and reaffirmed its projection for 5 per cent to 6 per cent organic revenue growth in 2025. Its shares were moderately down by midday Tuesday.
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