Coca-Cola increased its full-year guidance on Tuesday, raising its forecast for comparable earnings per share growth to at least 11% from a prior range of 9% to 10%. The company also boosted its organic revenue outlook to at least 5%, slightly up from its previous expectation of approximately 5% growth. CEO Henrique Braun attributed the company’s strong performance to executing with “speed and discipline” in an uneven operating environment.
For the third quarter, Coca-Cola reported net income attributable to shareholders of $4.01 billion, or 93 cents per share, compared with $3.7 billion, or 86 cents per share, in the year-ago period. On an adjusted basis excluding transaction gains and other items, the company earned 91 cents per share. Net sales rose 7% to $13.4 billion, with organic revenue also climbing 7% during the quarter.
Unit case volume increased 5% for the second consecutive quarter, driven by demand outside North America. North America experienced flat volume growth, though CFO John Murphy attributed this partly to the timing of the Fourth of July holiday and a prolonged shortage of Topo Chico sparkling water. The at-home business in North America outperformed the away-from-home segment, which encompasses restaurants, movie theaters, and amusement parks. Murphy indicated that restaurant industry pressure would likely persist through the remainder of the year.
Globally, sparkling soft drinks volume rose 5%, supported by growth in Coke, Coke Zero Sugar, and Diet Coke. Murphy noted that Diet Coke was experiencing a “resurgence,” gaining traction with younger consumers. The company’s water, sports, coffee and tea division also saw volume increase 5%, bolstered by demand for premium water brands. Coca-Cola shares fell less than 1% in morning trading following the announcement. Looking ahead, the company expects consumer behavior to remain largely unchanged, with shoppers continuing to prioritize value across income levels.
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