USA – The Coca-Cola Company has reported strong operating results in the second quarter of 2019, highlighting 6% growth in net revenues to US$10 billion.
The company attributed the revenue growth to concentrate sales growth of 4% and price/mix growth of 2%.
Other factors contributing to a standout performance included consumer-centric innovation, solid core brand performance and improved execution in the marketplace.
Operating margin was 29.9% versus 29.4% in the prior year impacted by an approximate 185 basis point negative impact from currency headwinds and net acquisitions.
During the period, the company said it continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages.
“Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry,” said James Quincey, chairman and CEO of The Coca-Cola Company.
“Our progress is positioning the company to create more value for all of our stakeholders, including our shareowners.”
Growing coffee and sparkling category
In the results, Coca-Cola has underlined the benefits of the Costa Coffee deal after launching Costa Coffee ready-to-drink products in Great Britain.
This marks the company’s first major introduction since it acquired Costa earlier this year, with plans to roll out the product in additional markets in the second half of the year.
The Costa Coffee brand is also expanding through a new agreement with Coca-Cola HBC AG, which plans to introduce Costa Coffee in at least 10 markets in 2020.
The quarter was also characterized by strong performance from sparkling soft drinks, led by 4% volume and transaction growth in trademark Coca-Cola.
Coca-Cola Zero Sugar once again recorded double-digit volume growth globally.
Quarterly performance was further driven by innovation, such as Coca-Cola Plus Coffee, and a modernized marketing strategy.
Coca-Cola launched its first Coca-Cola energy drink, featuring caffeine from naturally derived sources, guarana extracts, B vitamins and no taurine, in select European countries.
Coca-Cola Energy is available in 14 countries, including recent launches in Japan, Australia and South Africa and further roll outs are expected in 20 markets by the end of 2019, including Mexico and Brazil.
In the juice category, the company is quickly expanding its market presence with plans to expand Innocent smoothies (a brand it fully acquired in 2013) into Asia starting with Tokyo.
A World Without Waste
To deliver its World Without Waste goals, Coca-Cola has unveiled 100% recycled PET (rPET) packaging for most of its brands.
Coca-Cola Amatil and Coca-Cola Australia announced that 70% of all PET bottles in the market will be made from 100% rPET by the end of 2019.
Coca-Cola European Partners and Coca-Cola Great Britain announced a switch from green to clear bottles for Sprite in their markets as a way to improve recycling.
Coca-Cola Vietnam launched an industry-backed packaging recovery organization focusing on increasing recovery and recycling rates for PET, aluminum and Tetra Pak®.
In the Philippines, the Coca-Cola bottler has unveiled $19 million investment in a state-of-the-art recycling facility.