Coca-Cola has raised its annual organic sales and profit forecast, signalling strong demand for the beverage giant's sodas, energy drinks and juices in its US and international markets.
Coca-Cola has been foraying into newer regions in Asia and Europe to keep its revenue growth intact and launching reformulated versions of its drinks such as Coke Spiced and Georgia Coffee in markets that are quickly turning price-sensitive.
The soda giant expects fiscal 2024 organic sales to grow between 9% and 10%, compared with a previous forecast of 8% to 9% rise.
The company expects fiscal 2024 adjusted profit to increase between 5% and 6%, compared with its previous forecast of a rise of between 4% and 5%.
“We are encouraged with our second quarter results, which delivered solid topline and operating income growth in an ever-changing landscape,” said James Quincey, chair and CEO of The Coca-Cola Company.
“Together with our bottling partners, we continue to execute our highly effective all-weather strategy, and we are confident in our ability to deliver on our raised 2024 guidance and longer-term objectives.”
Quarterly Highlights
The cola giant reported net revenue growth of 3% during the quarter, to $12.4 billion, while organic revenue (non-GAAP) increased 15%.
Operating margin increased to 21.3% compared to 20.1% in the year-ago period, while comparable operating margin (non-GAAP) reached 32.8%, up from 31.6% in 2023. This growth was primarily driven by strong business performance and the impact of re-franchising bottling operations, the company added.
Unit case volume grew by 2%, with developing and emerging markets witnessing growth in mid-single digits, driven by growth in India, Brazil and the Philippines.
Sparkling soft drinks registered growth of 3%, boosted by strong performance in Asia Pacific and Latin America. Elsewhere, trademark Coca-Cola grew 2%, driven by growth in Latin America and Asia Pacific; Coca-Cola Zero Sugar grew 6%, driven by growth in all geographic operating segments; and sparkling flavours grew 3%, driven by Asia Pacific.
News by Reuters, additional reporting by ESM.
