Coca-Cola released second-quarter results that surpassed analyst expectations, prompting the company to elevate its full-year projections. The beverage maker now forecasts comparable earnings per share growth of 9% to 10%, up from a previous range of 8% to 9%. Additionally, Coke raised its organic revenue growth outlook to approximately 5%, moving to the upper end of its earlier 4% to 5% guidance.
The company attributed much of its strong quarterly performance to the impact of its World Cup marketing campaign. CEO Henrique Braun highlighted on CNBC that the tournament provided an excellent platform for the company’s brands, noting that Powerade was prominently featured during hydration breaks. Two products benefited particularly from the promotional efforts: Coca-Cola volume increased 5%, marking the brand’s largest quarterly jump in 17 years excluding pandemic effects, while Powerade volume rose 8%.
For the second quarter specifically, Coke reported net income of $4.43 billion, or $1.03 per share, compared with $3.81 billion or 89 cents per share in the year-ago period. Excluding restructuring costs and asset impairments, the company earned 97 cents per share. Net sales increased 7% to $13.38 billion, while organic revenue climbed 6%. Global unit case volume expanded 5%, with growth occurring across all reporting segments.
Coca-Cola’s performance stood in contrast to competitor PepsiCo’s recent reports of consumer spending constraints. Braun acknowledged the complex consumer environment, noting that while economic conditions remain robust in many regions, shoppers face inflationary pressures and geopolitical uncertainties affecting purchase decisions. Despite these headwinds, volume growth extended to North America with a 3% increase during the quarter.
Within specific product categories, Coca-Cola Zero Sugar experienced particularly strong momentum with 16% volume growth, while Diet Coke reported 7% growth. The relaunched Mr. Pibb, featuring 30% more caffeine, saw volume climb 20%. The company’s water, sports, coffee and tea segment delivered the strongest performance with 6% volume growth. Coke also noted progress in turning around its Costa Coffee business, which achieved same-store sales growth during the quarter. Stock in the company rose more than 7% during morning trading, reaching a record high.
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