By
Chimamanda U. Martha
October 24th, 2023
Based on its Q2 performance, Coca-Cola is now projecting organic revenue growth of 12% to 13%, up from the 7% to 8% it projected earlier.
American multinational beverage corporation, Coca-Cola Co (NYSE: KO) has seen its shares grow by 0.90% to $62.75 after the company posted its second-quarter earnings report where it reported better-than-expected revenue growth.
Coca-Cola (KO) Revenue and Other Indicators
According to data from Coca-Cola (KO), revenue grew by 11% in the quarter to $11.3 billion up 12% when compared to the year-ago period. This revenue surpasses the $10.56 that analysts were expecting. Adjusted earnings per share came in at 70 cents as against the 67 cents per share that polled analysts were expecting.
As a business whose operations are spread globally, the rising prices of commodities account for one of the major challenges the firm faced in the quarter. Significantly, it has also joined other multinationals in bearing the brunt of the growing inflation, and indirectly in the aftermath of the Russian invasion of Ukraine.
However, Coca-Cola has been able to account for its heavy operating costs with increased pricing and an increase in the sales volume in global markets.
Per the data insights published, the company said its “organic revenue (non-GAAP) performance was strong across operating segments and included 12% growth in price/mix and 4% growth in concentrate sales.” Coca-Cola said its concentrate sales recorded 4 points slid behind the unit case volume, a trend that is “largely due to the timing of concentrate shipments.”
As part of its performance, the firm said its business gained value in “total nonalcoholic ready-to-drink (NARTD) beverages.” Notably, the company’s beverages were able to top the expectations in part because the demand for products at centers like Theatres and restaurants grew as the broader economy reopens after about 2 years of COVID-19 onslaught.
Based on its Q2 performance, Coca-Cola is now projecting organic revenue growth of 12% to 13%, up from the 7% to 8% it projected earlier.
Coca-Cola (KO) to Keep Executive on Its Strategies
With the growth ticks the company recorded in the second quarter, it plans to continue its push to keep building on its strategy bordering on its global expansion amongst others.
“Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we’ve taken to execute for growth in the face of challenges in the operating and macroeconomic environment,” said James Quincey, Chairman, and CEO of The Coca-Cola Company. “We are staying true to our purpose, executing on our strategy, and delivering value for our stakeholders.”
The company said a part of its commitment is to bolstering its sustainable business practices. Despite the shortage of aluminum materials, Coca-Cola said it is working towards achieving 25% recyclable products by 2030.
“The company is progressing on its strategy to develop a circular economy for packaging materials aimed at eliminating waste and reducing carbon emissions through the continual use of existing, valuable resources, including high-quality recycled PET,” it said in the press release.