In the United States, the popularity of weight loss drugs and non-alcoholic beverages is causing consumers to delay purchases of sodas. Despite this, Coca-Cola reported strong earnings for the second quarter, driven by significant global demand for its products, leading the company to adjust its full-year outlook positively.
Coca-Cola CEO James Quincey expressed optimism about the company’s performance, stating that the results reflect solid growth in revenue and operating income amidst a challenging market environment. However, the company experienced a slight decline in volume sales, down 1% in North America. Quincey attributed this drop to reduced sales in “away-from-home channels,” which encompass water, sports drinks, coffee, tea, and sodas.
To mitigate the volume decline, Coca-Cola is collaborating with food chains to incorporate its sodas into combo meals. The company is reportedly working with McDonald’s to enhance the appeal of its $5 meal deal, which includes a soft drink.
Overall, Coca-Cola exceeded Wall Street’s expectations, reporting $12.4 billion in revenue for the quarter, translating to approximately $0.84 per share. Analysts had projected revenues of around $11.76 billion and earnings of about $0.81 per share.
Looking ahead, Coca-Cola has raised its forecast for organic revenue growth to between 9% and 10%, up from an earlier projection of 8% to 9%.
Pepsi, meanwhile, faces challenges in attracting U.S. consumers who are increasingly focused on healthier choices. The company has struggled to regain traction, citing a series of product recalls that contributed to a disappointing second quarter.