Coca-Cola recently announced an increase in its full-year revenue outlook as the global demand for its beverages surged in the second quarter. The company now expects organic revenue growth of 9% to 10% for 2024, up from its previous forecast of 8% to 9%. Additionally, Coca-Cola raised its projection for comparable earnings growth to a range of 5% to 6%, compared to a previous range of 4% to 5%. As a result of this positive news, the company’s shares rose approximately 1% in premarket trading.
In the second quarter, Coke reported earnings per share of 84 cents adjusted, surpassing analyst expectations of 81 cents. The company’s revenue of $12.36 billion also exceeded Wall Street estimates of $11.76 billion. Despite a decrease in net income attributable to shareholders compared to the previous year, Coca-Cola’s organic revenue, which excludes acquisitions, divestitures, and foreign currency effects, increased by 15% in the quarter. The company experienced a 3% growth in net sales, with unit case volume rising by 2%, primarily driven by international markets.
While Coke’s sparkling soft drinks division showed a global volume increase of 3%, its North American volume declined by 1% in the quarter. The decrease in volume in North America was attributed to lower demand for water, sports drinks, coffee, tea, and various soda brands, offsetting growth in juice, dairy, and plant-based beverages. The company’s overall prices rose by 9% compared to the previous year, with a significant portion of the increase stemming from hyperinflation in specific markets such as Argentina.
Looking ahead, Coca-Cola anticipates challenges in the third quarter due to the impact of foreign currency fluctuations. The company projects a 4% currency headwind on its comparable net sales and an 8% currency headwind on its comparable earnings per share. Despite these potential obstacles, Coca-Cola remains optimistic about its future performance and is focused on continued growth and innovation in the beverage market.