Latest news with #JamesQuincey
New Straits Times
4 hours 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.
Bloomberg
8 hours ago
- Business
- Bloomberg
Coca-Cola to Sell Cane Sugar Soda in US After Trump's Urging
Coca-Cola Co. said it's launching a new Coke product for American consumers made with US cane sugar this fall. Tuesday's announcement came less than a week after President Donald Trump said in a Truth Social post that the company agreed to use cane sugar in its US Coke beverages. On a call with analysts, Chief Executive Officer James Quincey thanked the president for his 'enthusiasm for our Coca-Cola brand.' For decades, Coca-Cola has used high fructose corn syrup, which is cheaper than cane sugar, to sweeten its signature product in the US. However, a pricier version of the soft drink, imported from Mexico, uses cane sugar and has gained a cult following. Bloomberg's Kenneth Shea reports. (Source: Bloomberg)
CNBC
8 hours ago
- Business
- CNBC
Coca-Cola earnings beat estimates as strong demand in Europe helps offset weakness elsewhere
Key Points Coca-Cola topped Wall Street's estimates for its quarterly earnings and revenue. The company reiterated its full-year forecast for organic revenue growth and narrowed its outlook to the top end of its prior range for comparable earnings per share. Coca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations as strong demand in Europe offset weaker volume in other markets. Shares of the company fell less than 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: 87 cents adjusted vs. 83 cents expected Revenue: $12.62 billion adjusted vs. $12.54 billion expected Coke reported second-quarter net income attributable to shareholders of $3.81 billion, or 88 cents per share, up from $2.41 billion, or 56 cents per share, a year earlier. Excluding asset impairments, restructuring charges and other items, the beverage giant earned 87 cents per share. Net sales rose 1% to $12.54 billion. Excluding items, the company's revenue reached $12.62 billion. The company's organic revenue, which strips out acquisitions, divestitures and foreign currency, increased 5%. But Coke's global unit case volume fell 1% in the quarter. Every division but Coke's Europe, Middle East and Africa business reported shrinking volume. The metric strips out the impact of pricing and foreign currency to reflect demand. Coke executives have said that economic uncertainty and geopolitical tensions have weighed on consumer confidence, hurting its sales in some markets. However, Coke saw sales pick up in the second quarter in some of its challenged markets, compared with the prior quarter, CEO James Quincey told analysts on the company's earnings conference call on Tuesday. "Several markets that were weaker in the first quarter improved volumes sequentially, including the U.S. and Europe. In these markets, the plans we've implemented are working, providing further confidence we can influence the trajectory of our results," Quincey said. In North America, volume fell 1% as demand for the company's namesake soda declined. Still, volume improved compared with the first quarter. "I think that's in the context of a pretty resilient overall consumer. The aggregate spend is holding up. Yes, there's some pressure in those with lower incomes, where we're targeting some affordability and some special focus on marketing and occasions," Quincey said. Hispanic consumers were also buying less of Coke's products, starting in the first quarter when rumors spread on social media that the company had reported undocumented workers to U.S. immigration authorities. Coke denied the accusations, but sales dipped until the end of June. "I think we've kind of put that one behind us, for now," Quincey said. Latin American unit case volume decreased 2%, while Coke's Asia-Pacific market saw the metric drop 3% in the quarter. The company's EMEA segment saw volume growth of 3%. Globally, Coke's sparkling softs drink segment, which includes its namesake soda, reported that volume shrank 1%. The company's juice, value-added dairy and plant-based beverage division saw volume fall 4%. And its water, sports, coffee and tea segment reported flat volume for the quarter, as growth in coffee offset declines in sports drinks. Coke also announced that it plans to introduce a version of its namesake cola made with cane sugar in the U.S. this fall. For the full year, Coke narrowed its outlook for comparable earnings per share growth to 3%, the top end of the range it had previously provided. The company reiterated its forecast that organic revenue will increase 5% to 6% in 2025.
Yahoo
9 hours ago
- Business
- Yahoo
Coca-Cola leaned on marketing to navigate choppy economic waters in Q2
This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter. Dive Brief: Coca-Cola saw organic revenue grow 5% in Q2 despite global unit case volume declining by 1%, per an earnings report. The company still expects to deliver 5% to 6% organic revenue growth this year. Marketing campaigns were cited by executives as contributing to the growth of different brands, including original Coca-Cola, Coca‑Cola Zero Sugar and Diet Coke. The beverage maker is navigating a volatile global economy and recently announced plans to use U.S. cane sugar in its signature beverage, a change first announced by President Donald Trump. Dive Insight: Coca-Cola's Q2 earnings, which beat Wall Street's expectations, demonstrate how the CPG giant is driving growth despite facing different challenges around the globe. The company's organic growth rate is in line with its guidance for the full year even as volumes soften. '[While] the external environment continues to be dynamic, and there is no doubt that much uncertainty remains in the downhill, we remain growth-orientated,' said CEO James Quincey on a call discussing the results with investors. 'We're continuing to pivot our plans as needed, and we are harnessing our all-weather strategy to deliver on our growth ambitions.' Part of that 'all-weather strategy' rests on marketing, which executives cited as bolstering a number of brands during the quarter. The company used contextually relevant advertising to push messages of value and affordability in Q2, and saw volume growth for Coca-Cola Zero Sugar, Diet Coke, Fanta, Fairlife, Bodyarmor and Powerade. A relaunch of the 'Share a Coke' campaign was activated on more than 10 billion bottles and cans in more than 120 countries and included over 30,000 names tailored to local markets. The effort contributed to single-serve transaction growth in the category and helped Coca-Cola Zero Sugar see double-digit volume growth for the fourth consecutive quarter. Meanwhile, Diet Coke's 'This is My Taste' campaign, which was inspired by social media insights, contributed to the product's fourth consecutive quarter of volume growth in North America. Coca-Cola's marketing was also a source of productivity-related savings that improved the company's margins. The marketing transformation that the company has undertaken for the last few years is finding not just effectiveness via digital and segmented advertising, but also efficiencies in advertising production and media buying, Quincey explained. 'They're going to need to make investments in different areas of the company to drive future sales, but they also like to get productivity enhancements to offset some of those investments so… they can grow the top line and improve margins,' said Dave Novosel, senior bond analyst Gimme Credit. 'The fact that they've been able to do both is encouraging… The advertising productivity is a big part of that.' Coca-Cola's marketing transformation has also helped the company quickly test ideas, share learnings and scale campaigns across its portfolio. To that point, the company saw consumer perception improve significantly in Mexico as it launched initiatives like its 'Juntos Posen' campaign and an activation around the World Cup. The use of targeted, contextual advertising also helped Coca-Cola push back on claims about how its product is made that have dogged the company in several markets and demographics. The company also made official plans to expand its flagship product with an offering made with U.S. cane sugar as a way to offer consumers more choices. The plan was first announced last week by President Trump. 'As you may have seen last week, we appreciate the President's enthusiasm for our Coca-Cola brand,' Quincey said on the earnings call. Recommended Reading How Coca-Cola's marketing transformation led to new Smartwater campaign
Yahoo
9 hours ago
- Business
- Yahoo
Coca-Cola Stock Dips as Pricing Pressure Offsets Q2 Earnings Beat
July 22 - Shares of Coca-Cola (NYSE:KO) dipped more than 1% Tuesday morning despite the company posted better-than-expected second-quarter earnings, fueled by stronger pricing and resilient demand for its zero-calorie sodas. Revenue for the quarter rose 2.5% year over year to $12.62 billion, topping LSEG estimates of $12.54 billion. Higher prices helped offset a 1% decline in global beverage volumes, with North America seeing weakness tied to consumer pressure in lower-income groups. Volumes slipped in key regions including India, Mexico and the U.S., partly due to a now-resolved boycott by Hispanic consumers. CEO James Quincey noted that economic uncertainty and pricing sensitivity weighed on sales in some markets. Coca-Cola added it anticipates its annual comparable EPS to fall in the range of the upper limit of its historical goal of 2 percent to 3 percent growth with help of a weaker U.S. dollar. There is also an expansion strategy of the company to introduce an American version of its Coke in cane sugar in some of the markets where it is already marketed, such as in Mexico. The step comes as part of a wider trend of the industry moving to lighter ingredients, though analysts warned it will increase expenses and increase supply chain complexity. The Coca-Cola also stated that it is remaining pessimistic on the expenses due to world trade dynamics. The company is still trying to look into cheaper packaging following a sharp increase in tariffs in the United States on foreign supply of imported aluminum which increased by 50%. This article first appeared on GuruFocus. Sign in to access your portfolio
