Coca-Cola increased its financial guidance on Tuesday, announcing that comparable earnings per share would grow at least 11% for the full year, surpassing its previous projection of 9% to 10% growth. The company also lifted its organic revenue forecast to at least 5%, up slightly from its prior outlook of approximately 5%. Chief Executive Henrique Braun attributed the company’s performance to its “speed and discipline” in navigating what he characterized as an uneven business environment.
In its fiscal third-quarter results, 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-earlier period. Excluding certain gains and items, the company earned 91 cents per share. Net sales increased 7% to $13.4 billion, while organic revenue also advanced 7% during the quarter. Unit case volume rose 5% for the second consecutive quarter, driven primarily by demand outside North America. Share prices fell less than 1% in morning trading following the announcement.
North American operations presented a mixed picture. Volume in the home market remained flat, though Chief Financial Officer John Murphy indicated that underlying momentum remained strong when accounting for timing effects from the Fourth of July holiday and supply constraints affecting Topo Chico, the company’s sparkling water brand. The company’s at-home business outperformed its away-from-home segment, which includes restaurants and entertainment venues, as those channels continued facing pressure. Management expects the restaurant industry weakness to persist through the remainder of the year.
Globally, Coca-Cola’s sparkling soft drinks segment achieved 5% volume growth, driven by increased demand for Coke, Coke Zero Sugar, and Diet Coke. Murphy noted that Diet Coke was experiencing a resurgence among younger consumers. The water, sports, coffee and tea division reported 5% volume growth, fueled by demand for premium water offerings, though coffee and tea demand remained flat and sports drink volume declined. The juice, value-added dairy and plant-based beverages category posted flat volume despite growth in specific brands.
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