Latest news with #Coca-ColaCompany
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
Beverage makers' April-June quarter takes a hit due to unseasonal rain
Early monsoon and unseasonal rainfall this year in most parts of the country have impacted the topline of beverage makers in the June quarter. This has not only impacted sales of the cola brands but also traditional milk-based beverage products, such as lassi, shakes, flavoured milks, and buttermilk. Interestingly, the beverage makers had early volume gains in 2026 as summer arrived early. They had stocked inventory and channels in anticipation of a repeat of last year's bumper sales. However, by mid-April, intermittent rainfall started hitting southern and western India, impacting overall which sales from early May. The Coca-Cola Company Chairman and CEO James Quincey, in the latest investors' call, said the company got a "hit by some early monsoon in India", in the June quarter, which is the important selling season in the country. The company had a good start in the quarter, but early arrival of monsoon impacted it, said Quincey. "In India, after a strong start to the year, volume declined, as our business was impacted by early monsoons and geopolitical conflict (India-Pakistan conflict) early in the important summer season," he said. India is the fifth largest market for The Coca-Cola Company, which operates here with brands as ThumsUp, Sprite, Maaza, Minute Maid, Kinley, besides Coca-Cola and Coke. For PepsiCo, India continues to be a double-digit growth path; however, its beverage business was also hit in India during the quarter under review. PepsiCo's International Beverages Franchise (IBF) segment, which focuses on the bottling and distribution of PepsiCo's beverage brands outside of North America, had "a decline in India" in the second (June) quarter, the company said earlier this month in its earnings statement. IBF includes PepsiCo's international franchise beverage businesses, as well as its SodaStream business. In India, PepsiCo's bottling operations in India are mostly handled by its largest franchisee is Varun Beverages Ltd (VBL). Several dairy companies also faced an impact on sales of beverage products in the quarter, due to unseasonal rainfall and early arrival of monsoon. IDA President R S Sodhi told PTI more rain has affected the demand for beverages, including dairy-based ones, this year. Moreover, he said the rural demand is also tight because of inflation. "The emergence of many local and regional brands in the beverage segment is also impacting sales of large companies," he said. Tata Consumer Products Ltd, which operates in the beverages segment with its glucose-based drink Gluco+ and Fruski, said volume growth of its ready to drink (RTD) business "was impacted by unseasonal rain" in the June quarter. "RTD business was impacted by unseasonal rains and recorded a moderate volume growth of 3 per cent," the Tata group FMCG arm said in its earnings statement. Similarly, home-grown FMCG major Dabur India said its consolidated revenue in the June quarter is expected to grow in low-single digits on account of a decline in beverages, which was impacted during the quarter due to unseasonal rainfall and a short summer. "The beverage portfolio was impacted during the quarter due to unseasonal rains and short summer," Dabur said earlier this month in its quarterly updates.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Coca-Cola (KO) Raises 2025 Profit Forecast
The Coca-Cola Company (NYSE:KO) reported its second quarter 2025 results on July 22nd, delivering 5% organic revenue growth, 4% year-over-year comparable earnings per share growth, and continued robust comparable margin expansion, despite a 1% decline in volume amid currency headwinds. Management raised full-year 2025 comparable currency-neutral EPS growth guidance to about 8% and underscored strong operational agility, market-specific pivots, disciplined reinvestment, and tangible advances in productivity as key drivers of performance. The following insights address strategic execution, margin durability, and portfolio innovation that underpin the company's long-term investment thesis. Margin expansion drives KO's profit growth Comparable operating margin expanded by 190 basis points year-over-year, driven by a combination of productivity initiatives, favorable investment timing, and cycling effects. Margin resilience persisted even as volume growth turned negative 1% year-over-year, juxtaposed with solid performance in developed markets and pockets of emerging market weakness. "Comparable gross margin increased approximately 80 basis points, and comparable operating margin increased approximately 190 basis points. Both were driven by underlying expansion, partially offset by currency headwinds. Approximately one-third of our underlying expansion was driven by faster realization of our productivity initiatives, while the rest was driven by timing of investments and favorable cycling versus the prior year." -- John Murphy, President and Chief Financial Officer This sustained margin expansion highlights structural cost discipline and operational leverage, supporting earnings momentum even in a mixed volume environment where pricing power and productivity offset input pressures. Strategic pivots sustain KO top-line algorithm KO achieved seventeen consecutive quarters of global value share gains, with 5% organic revenue growth (non-GAAP) and sequential improvements in key developed markets. Management emphasized the need for rapid, data-driven adjustments at both geographic and channel levels, as illustrated by accelerated marketing and value initiatives targeting Mexico, India, and underperforming emerging markets following weather and geopolitical headwinds. "We got hit by an early monsoon in India, which is the important selling season, plus the India-Pakistan conflict, brief as it was, plus weather in Mexico, which required us to pivot to bring back growth in those parts of the world coming into the second half. So it's really, if you like, about the need for the all-weather strategy, to be taken up another notch in terms of how fast you can pivot and execute to still deliver the results that we're delivering." -- James Quincey, Chairman and Chief Executive Officer This operational agility enhances KO's ability to defend its growth algorithm, mitigating externally driven volatility and reinforcing its leadership via tailored price-pack architecture and marketing that restore brand momentum across regions. Portfolio innovation and capacity gains unlock future growth The Fairlife brand sustained double-digit volume growth, albeit at moderating rates in the second half of 2025, due to pronounced U.S. production bottlenecks; the expansion of the New York facility in early 2026 will relieve capacity constraints. At the same time, KO's $30 billion-brand portfolio and disciplined innovation pipeline (e.g. Sprite Plus Tea, U.S. cane sugar Coca-Cola) address evolving consumer preferences, while ongoing international expansion targets differentiated value-added dairy opportunities. "Firstly, Fairlife continues to have strong growth. Double-digit volume growth in the second quarter. The New York facility will come online at the beginning of 2026, obviously. That doesn't all turn on with a flick of the switch on day one, and that will ramp up over 2026, but it will steadily debottleneck our constraints on capacity across all the different Fairlife variants and package sizes. Secondly, as it relates to international, having made some investments in dairy which were unhappy in small countries and with small investments, it is worth pointing out that Santa Clara in Mexico also had a strong performance. It's now the number one value-added dairy business in Mexico." -- James Quincey, Chairman and Chief Executive Officer Capacity expansion and innovation ensure that KO captures share in high-growth premium categories, extending its competitive moat beyond traditional CSDs (carbonated soft drinks). Looking Ahead Management reaffirmed its full-year 2025 organic revenue growth guidance of 5%-6% and raised comparable currency-neutral earnings per share growth guidance to about 8% for 2025, though comparable EPS growth is now expected at 3% year-over-year due to a roughly 5-point currency headwind. KO expects positive volume growth in the second half of 2025 as transitory Q2 impacts fade and investment flexibility increases, with concentrate sales in Q3 2025 expected to trail unit cases modestly. The company highlighted robust free cash flow generation ($3.9 billion in Q2, up $600 million versus the prior year's second quarter), and ongoing discipline in hedging and productivity, while confirming that strong first-half 2025 margin gains mean margin expansion will not be weighted toward the second half. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,037%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025
&w=3840&q=100)
Business Standard
5 days ago
- Business
- Business Standard
Coca-Cola, Bhartiya family likely to consider listing HCCB in India
American beverage major Coca-Cola Company and its local partner, the Bhartiya family, may look at listing Hindustan Coca-Cola Beverages (HCCB) in India and will not hold a majority stake in the bottling company in the next five years, according to a source in the know. The source said, as per the plan, going forward, the Bhartiya family becomes the reference and controlling shareholder of the business. 'They are not, by any means, a passive financial investor or a passive strategic investor, and that's not what Coca-Cola Company was looking for here,' the source said. On HCCB possibly going for a listing in the coming years, the source added, 'There's certainly been no explicit confirmation of the intention to proceed with an IPO, but that's an obvious possibility.' In December last year, the Jubilant Bhartia Group, through Jubilant Beverages, announced that it would acquire a 40 per cent stake in Hindustan Coca-Cola Holdings—the parent company of the local bottling companies—at a valuation of Rs 12,000 crore. While Coca-Cola still remains the majority shareholder, the Atlanta-based beverage major's strategy is to refranchise its bottling operations globally as part of its asset-light model across the world. Rothschild & Co advised Coca-Cola on this transaction, which concluded this month. 'We started the process of reaching out to a number of potential Indian family partners that we thought would be fit-for-purpose partners in late 2023 and conducted a competitive process. What was initially a competitive process among several of those eventually led, in September 2024, to an exclusive dialogue with the Bhartiya family, which led to the signing of the transaction,' Akeel Sachak, partner and global head of consumer, Rothschild & Co, said at a roundtable. He added that one of the things that distinguished the Bhartiya family from other suitors was their success as a franchise partner of a major American brand, Domino's. While talking about trends emerging in the consumer space, multiple Indian industrial houses and conglomerates are keen to expand in the broader consumer sector, Subhakanta Bal, managing director, Rothschild & Co India, said. 'We are beginning to see multiple family offices that are wanting to tap into the kind of potential that, let's say, the broader Indian consumer sector offers. The recent paints transaction that just got announced (JSW acquired AkzoNobel's India business), or some of the largest families who have deployed significant amounts of capital into essentially what are new sectors or sunrise sectors, and we're beginning to see that,' Bal added.
Hamilton Spectator
7 days ago
- Business
- Hamilton Spectator
Will Coca-Cola's new cane sugar Coke be sold in Canada – and is it really healthier?
After U.S. President Donald Trump announced his preference for real cane sugar in Coke, the American soft drink giant confirmed it will bring a new version of the popular soft drink to U.S. consumers this fall. In its latest earnings report, the Coca-Cola Company revealed it plans to offer a new Coca-Cola drink sweetened with U.S. cane sugar. It's unclear if the product will match the formula for Mexican Coke, which already uses the natural sugar. The Coca-Cola Company has confirmed it will roll out the new formula this fall. 'As part of its ongoing innovation agenda, this fall in the United States, the company plans to launch an offering made with U.S. cane sugar to expand its Trademark Coca-Cola product range,' Coca-Cola said in a news release . 'This addition is designed to complement the company's strong core portfolio and offer more choices across occasions and preferences.' It's unclear whether the new formulation will be available in Canada. Metroland reached out to Coke Canada Bottling, the company responsible for making, distributing and selling Coca-Cola products in Canada. We will update this article when we receive a response. According to the ingredient list on Coke sold in Canada, the beverage is made with sugar/glucose-fructose. For now, Canadians looking for a cane sugar Coke can pick up an imported version of the soft drink, although it may cost a little more. Coke's Mexican version, known as Coca Cola de México, is made with with natural flavours and cane sugar, according to . It doesn't contain high-fructose corn syrup. According to , Mexican Coke is available in 355-ml bottles at Walmart, Metro and Loblaw stores in Ontario, including Valu-Mart, Real Canadian Superstore, Wholesale Club and Fortinos. The four-pack ranges in price from about $7.50 to $9, depending on where you purchase it. Diabetes Canada says all added sugars — including white, brown or cane sugars, corn syrup, honey, molasses or maple syrup — are absorbed the same way in the body and have the same impact on blood sugar. Diabetes Canada said they all provide the same number of calories and are low in nutrients. Therefore, there is no advantage for people with diabetes to choose one over another. Focusing on the total amount of any added sugar rather than the type is key, Diabetes Canada adds online . Hamilton Health Sciences notes children should drink water when they are thirsty or choose low-fat milk (skim or one per cent) more often (two to four servings a day). Regardless of whether the drink contains refined sugar or cane sugar, parents should limit the amount of soda, juice, fruit drinks and ice teas kids consume to no more than two drinks a week, the hospital networks says. Trump announced his desire for a cane sugar Coke in a July 16 post on his Truth Social platform and said Coca-Cola had agreed to switch from high-fructose corn syrup. 'I'd like to thank all of those in authority at Coca-Cola,' Trump wrote at the time. 'This will be a very good move by them — You'll see. It's just better!' The move won't impact Trump's favourite Coca-Cola beverage, Diet Coke, which is sweetened with aspartame . In a news release announcing its second quarter earning statement, the Coca-Cola Company said its net revenues grew one per cent to US$12.5 billion during the second quarter of 2025. The company credited initiatives like the relaunch of its 'Share a Coke' campaign, which includes personalized bottles featuring over 30,000 names tailored to local markets. '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,' James Quincey, The Coca-Cola Company's chair and CEO, said in the release. 'We continue to execute with a clear intent on our priorities and are confident in our trajectory to deliver on our updated 2025 guidance and longer-term objectives.' But Coca-Cola's signature product, the original formula Coca-Cola, has experienced a slight decline in sales. Sales of Coca-Cola's original trademark product fell one per cent over the second quarter of 2025, as growth in Europe, the Middle East and Africa was more than offset by a decline in Latin America. The company said sales of Coca-Cola Zero Sugar grew 14 per cent across all geographic operating segments. The sugar-free Coke Zero has achieved double-digit volume growth for four consecutive quarters, the company added, signalling a potential shift in consumer desire away from products with high-fructose corn syrup. The product is sweetened with aspartame and acesulfame potassium instead of sugar. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
New Straits Times
7 days ago
- Business
- New Straits Times
Coca-cola earnings, revenue beat expectations, cane sugar soda to hit US market
NEW YOR: The Coca-Cola Company reported stronger-than-expected second-quarter (Q2) earnings and revenue Tuesday, as robust demand in Europe helped offset weaker sales volumes in other regions, reported Xinhua. 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.
