Coca-Cola top earnings expectations as low-sugar drinks fuel growth
The Coca-Cola Company has topped Wall Street estimates for its second-quarter earnings as more consumers bought its healthier diet drink options.
The company has launched new flavours of its Diet Coke range in slimmer packaging and has introduced no-sugar alternatives in smaller markets to tap into health-conscious consumers who are shifting away from sugary drinks.
The world’s largest beverage company said that its organic revenue, or sales from its core beverage business, climbed 5%.
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It said that it saw the strongest organic sales growth in its Europe, Latin America and the Middle East and Africa zones, noting that its European business was bolstered by the company’s advertising efforts during the World Cup.
The Coca-Cola Company also reported that organic volumes climbed 2% thanks to the strong performance of its trademark Coca-Cola brand and Fuze Tea.
In its report, the firm said its net revenue declined 8% to $8.9bn, as it was impacted by a 15% headwind from the refranchising of its company-owned bottling operations.
“We're encouraged with our performance year-to-date as we continue our evolution as a consumer-centric, total beverage company," said James Quincey, President and CEO of The Coca-Cola Company. "We have the right strategies in place and remain focused on achieving our full year guidance."
Coca-Cola has continued to invest in its e-commerce platform, MyCoke, which has also led to a 5% increase in sales revenue compared to orders placed through traditional call centres, according to the company.
