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Coca Cola Exceeds Q2 Revenue Expectations

On Tuesday, Coca Cola Co. beat quarterly-profit estimates and upstretched its organic revenue forecast in 2019. Demand for 0%-sugar soda and several additional products and innovations, such as the Coca Cola coffee, drove the rise in the company’s revenue.

The leading beverage company reported a net income of $2.61 billion, which equates to 61 cents per share, for the second quarter. In the previous year, Coca Cola reported a $2.32 billion or 54 cents per share.

When adjusted in exclusion of certain items, Coke earned 63 cents per share compared to analysts’ expectation of 61 cents per share.

The beverage company’s net sales rocketed to $10 billion, up by 6%, overcoming the $9.99-billion bets by a whisker. Incidentally, Coca Cola increased its fiscal-year revenue outlook with organic revenue growth of 5%. It added by reiterating its 2019 earnings forecast of a rise or fall by 1%.

Coke said that its strong performance and positive quarterly results were thanks to 4% volume and transaction growth in its namesake brand. The Zero Sugar line of Coke saw another double-digit growth in volume worldwide.

In the midst of the second quarter, Coca Cola partnered with Netflix in attempts to “bring back Coke.” On top of that, to endorse the third season of Netflix’s fantasy-thriller series Stranger Things.

During that time, the beverage giant also rolled out the Coca Cola Plus Coffee in additional markets. It is evident in the company’s aim to expand into various kinds of caffeinated drinks.

Furthermore, after acquiring Costa Coffee for $5.1 billion in early 2019, the soda-maker also released its first product line with the U.K. coffee brand. The canned caffeinated beverages, which contain double shots of espresso, will also launch in Poland and China.

However, there are no current plans to bring the coffee drinks in the United States.

More Rollouts and Coke’s First Alcoholic Drink to Debut in Japan

Coca Cola also launched its first energy drink during the second quarter. Coca Cola Energy contains caffeine from natural resources. The drink is available in 14 countries such as Japan and South Africa.

By the end of the year, Coke also plans to release the drink in Mexico, Brazil, other countries. Similar to the previous product, the soda-maker is yet to disclose whether it will launch Coca Cola Energy in the U.S.

Notably, Coca Cola Japan is also preparing for an official entry into the alcoholic beverage market, which will start from Japan.

Last year, in May, the leading beverage company launched “Lemon-Do chuhai,” a premixed cocktail, in Kyushu as a test-run.

Coca Cola Japan is now gearing up to release the lemon chuhai to supermarkets and convenience stores in October.

The alcoholic beverage will be the first unit of Coke’s alcoholic products. Fizzy drinks or soda pop represent about 70% of the company’s global beverage sales, considering volume.

Coke aims to make canned chuhai as a source for revenue in the event that the soda pop market decelerates.

In Japan, chuhai sales have doubled in around 10 years. Chuhai is cheaper than beer and offers a variety of flavors.

“We are planning to enter the alcoholic drink market to sustain our growth although competition is fierce,” an official at Coca Cola Japan said.



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