Coca-Cola announced on Tuesday an upward revision to its full-year outlook for 2024, driven by increased global demand in the second quarter. The beverage giant now anticipates organic revenue growth of 9% to 10%, an increase from the previous forecast of 8% to 9%. Additionally, Coca-Cola has raised its outlook for comparable earnings growth to a range of 5% to 6%, up from the earlier projection of 4% to 5%.
“Our updated 2024 guidance reflects the momentum of our business in the first half of the year and our confidence in our ability to execute on our plans during the second half,” stated CFO John Murphy during the company’s conference call.
Following the announcement, Coca-Cola’s shares saw a modest rise of around 1% in morning trading. The company reported second-quarter net income attributable to shareholders of $2.41 billion, or 56 cents per share, compared to $2.55 billion, or 59 cents per share, a year earlier. Excluding restructuring costs, charges related to the value of the Fairlife milk brand, and other items, the company earned 84 cents per share.
Net sales increased by 3% to $12.36 billion, while organic revenue, which excludes the effects of acquisitions, divestitures, and foreign currency fluctuations, grew by 15% in the quarter. The unit case volume, which measures demand by excluding pricing and currency impacts, rose by 2%, driven largely by international markets.
In contrast, North American volume declined by 1% for the quarter. This drop was attributed to decreased sales in categories such as water, sports drinks, coffee, tea, and sodas, although there was growth in juice, dairy, and plant-based beverages. CEO James Quincey cited weak sales in away-from-home channels as a key factor in the North American decline. To counteract this, Coca-Cola is partnering with food service customers to market food and drink combo meals.
Globally, Coca-Cola’s sparkling soft drinks division, which includes its flagship soda, saw a 3% rise in volume, driven by strong demand in the Asia-Pacific and Latin American regions. The juice, dairy, and plant-based beverages segment reported a 2% volume increase. However, the water, sports, coffee, and tea division experienced flat volume, impacted by reduced demand for bottled water and declining Costa coffee sales in the UK.
Overall, Coca-Cola’s prices increased by 9% year-over-year, with about half of this rise attributed to hyperinflation in markets such as Argentina.
Looking ahead to the third quarter, Coca-Cola expects foreign currency fluctuations to negatively impact its results, forecasting a 4% currency headwind to comparable net sales and an 8% headwind to comparable earnings per share.
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