Coca-Cola revised its full-year outlook on Tuesday, boosted by increased global demand in the second quarter. The company now forecasts organic revenue growth of 9% to 10% for 2024, up from its prior estimate of 8% to 9%. Additionally, the outlook for earnings growth has been elevated to 5% to 6%, previously projected at 4% to 5%.
“This updated 2024 guidance reflects the momentum of our business in the first half of the year and our confidence in our ability to execute on our plans during the second half,” CFO John Murphy stated during a conference call. Following the announcement, Coca-Cola shares rose over 1% in morning trading.
Coca-Cola reported adjusted earnings per share of 84 cents, surpassing Wall Street’s expectation of 81 cents. Revenue also exceeded forecasts, totaling $12.36 billion compared to the anticipated $11.76 billion. The company’s second-quarter net income attributable to shareholders was $2.41 billion, or 56 cents per share, slightly down from the previous year’s $2.55 billion, or 59 cents per share. Excluding various charges, the beverage giant earned 84 cents per share, with net sales increasing by 3% to $12.36 billion. Organic revenue saw a 15% rise.
The company’s unit case volume expanded by 2%, mainly driven by international markets, although North American volume declined by 1%, largely due to weak sales in away-from-home channels. In response, Coca-Cola is collaborating with food service partners to promote combo meals. For instance, the company is supporting McDonald’s $5 value meal, which includes a drink, to attract more franchisees.
Globally, Coca-Cola’s sparkling soft drinks segment experienced a 3% volume increase, driven by demand in Asia Pacific and Latin America. Its juice, dairy, and plant-based beverages achieved a 2% growth, while the water, sports, coffee, and tea division reported flat volumes, attributed to decreased demand for bottled water and Costa coffee in the UK. Prices overall rose 9% year-over-year, influenced partly by hyperinflation in markets like Argentina.
Looking ahead to the third quarter, Coca-Cola anticipates foreign currency fluctuations to negatively impact results, forecasting a 4% currency headwind on net sales and an 8% on earnings per share.
Original Story https://www.cnbc.com/2024/07/23/coca-cola-ko-q2-2024-earnings.html
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