Coca-Cola has reported strong earnings for the second quarter, fueled by robust global demand for its beverages, despite a decline in U.S. sales. The beverage giant announced it is raising its full-year guidance following the release of its financial results. CEO James Quincey expressed optimism about the company’s performance, highlighting solid revenue and operating income growth amid changing market conditions.
However, Coca-Cola did experience a 1% decline in volume sales in North America during the quarter. Quincey attributed this drop primarily to weak performance in away-from-home channels, which includes water, sports, coffee, tea, and soda products. The decline was somewhat offset by the popularity of Fairlife milk and the Coca-Cola soft drink, which ranked first and second in retail sales growth, respectively.
To address the decline in soda sales, the company is partnering with food chains, including McDonald’s, to promote its beverages as part of meal combos. This initiative aims to enhance the value of promotions like McDonald’s $5 meal deal that includes a soft drink.
Coca-Cola’s second-quarter revenue reached $12.4 billion, exceeding Wall Street’s expectations of $11.76 billion. The company’s earnings per share were reported at $0.84, compared to the anticipated $0.81.
Looking ahead, Coca-Cola has revised its forecast for organic revenue growth, now projecting an increase of 9% to 10%, up from its previous estimate of 8% to 9%.
In contrast, Pepsi is facing challenges in capturing U.S. consumer interest, as individuals increasingly opt for products focused on weight loss and healthier lifestyles. The company recently attributed its underwhelming second-quarter performance to several product recalls.