Coca-Cola has reported strong second-quarter earnings, with global demand for its beverages prompting the company to raise its full-year guidance. CEO James Quincey expressed optimism about the results, noting solid growth in both revenue and operating income amid a changing market landscape.
Despite its overall success, Coca-Cola experienced a 1% decline in volume sales in North America, attributed to weaker performance in away-from-home channels such as water, sports drinks, coffee, tea, and soda. However, sales of Fairlife milk and Coke soda helped mitigate some of this decline, with Coke ranking highly in retail sales growth during the quarter.
To address the volume drop, the company is partnering with food chains, particularly McDonald’s, to incorporate its soda into combo meals, aiming to enhance the appeal of meal deals that include soft drinks.
Financially, Coca-Cola exceeded Wall Street expectations, reporting $12.4 billion in revenue, which translates to about $0.84 per share, outperforming the anticipated $11.76 billion. The company has now adjusted its forecast for organic revenue growth to a range of 9% to 10%, an increase from its previous estimate of 8% to 9%.
Similarly, Pepsi is facing challenges in attracting U.S. consumers, who are increasingly favoring weight-loss products and healthier options. The company recently attributed its underwhelming second-quarter performance to a series of product recalls.