US bottler Coca-Cola Consolidated reported a 9% year-on-year increase in net sales to $1.7 billion (€1.6 billion) in the second quarter despite a 4% decline in volumes.
The increase was driven primarily by price increases across the company's product portfolio over the last year, Coca-Cola Consolidated said in a statement.
Gross profit in the second quarter amounted $671.6 million (€613.6 million) - an increase of 22% year-on-year, or $120.9 million (€110.5 million), while gross margin improved 410 basis points to 38.6%.
The growth in gross profit resulted from higher prices and a moderation of costs of certain commodities.
J Frank Harrison, III, chairman and chief executive officer of Coca-Cola Consolidated, stated, "Our results are a testament to the strength of our brands and the dedication of our people as we navigate the current retail environment and the ever-evolving preferences of our consumers.
"I believe the plans we have in place for the second half will enable us to build on our first-half success, further strengthen our field operations and drive continued consumer engagement with our brands."
Volume Decline
In the sparkling category, volume decreased 2.1% during the second quarter, but it continued to perform well versus historical price elasticities, typically associated with higher pricing.
The company added that sales in immediate consumption continue to perform well, outpacing sales of take-home packages.
In the still beverage segment, volume declined 8.9% during the second quarter as the sports drinks category slowed considerably.
However, categories, such as energy and enhanced water, continued to perform well, with Monster and smartwater brands achieving 'solid' growth during the quarter.
'Strong Second-Quarter Results'
“Our strong second-quarter results reinforce the success we are having with our retail partners in commercialising our local marketing plans and providing our consumers with a variety of affordable packages,” said Dave Katz, president and chief operating officer.
“This is a very dynamic period as we see consumers shifting between retail channels, especially within supermarkets, Club and Value stores. As overall volume slowed in the second quarter, we have proactively engaged with our retail partners to help drive consumer traffic and transaction growth for the balance of this year."
Headquartered in Charlotte, N.C., Coca‑Cola Consolidated is the largest Coca‑Cola bottler in the United States.
It makes, sells and distributes beverages of The Coca‑Cola Company and other partner companies to approximately 60 million consumers in more than 300 brands and flavours across 14 states and the District of Columbia.
