Coca-Cola has reported strong second-quarter earnings, driven by robust global demand for its beverages, leading the company to raise its full-year guidance. CEO James Quincey expressed optimism about the quarter’s results, highlighting solid revenue and operating income growth despite a shifting market.
However, the company experienced a 1% decline in volume sales in North America during the quarter. Quincey attributed this drop to reduced sales channels outside the home, including products such as water, sports drinks, coffee, tea, and soda.
This decline was somewhat mitigated by the success of Coca-Cola’s Fairlife milk and its traditional soda, Coke, which ranked first and second in retail sales growth, respectively. To counteract the downturn, Coca-Cola is collaborating with food chains to include its soda in combo meal deals, notably partnering with McDonald’s to enhance its $5 meal offering, which comes with a soft drink.
Coca-Cola’s second-quarter revenue reached $12.4 billion, translating to approximately $0.84 per share, surpassing Wall Street’s estimates of $11.76 billion and $0.81 per share. The company has now increased its forecast for organic revenue growth to between 9% and 10%, raising it from the previous estimate of 8% to 9%.
Meanwhile, PepsiCo has been facing challenges in attracting U.S. consumers, who are shifting their focus toward weight-loss and healthier options, with young adults consuming less alcohol, according to recent Gallup polling. Pepsi attributed its subdued second-quarter performance to several product recalls earlier in July.