US – American multinational beverage corporation, The Coca-Cola Company, has posted a 12% rise in second-quarter net revenue, totaling US$11.3 billion boosted by price hikes.
The drinks giant said the 12% increase from a year ago was attributed to higher pricing and an increase in global case volume, which was driven by the recovery in its away-from-home business.
According to Coca-Cola, higher pricing was to enable it to manage higher costs on freight, high fructose corn syrup, and aluminum.
The company also recorded organic revenue growth of 16%, which included a 12% growth in price/mix – in part reflecting pricing actions.
However, the Atlanta-based maker of Sprite, Dasani, and Minute Maid noted that its operating income declined 22% in the quarter.
Currency headwinds and items impacting comparability were both responsible for the fall.
Coca-Cola’s unit case volume, a key indicator of demand, grew 8%, with broad-based growth across all geographic operating segments.
The company detailed that continued recovery in away-from-home channels helped drive volume performance, and growth in developed markets.
This time around, the markets were led by Mexico, Western Europe, and the US, while growth in developing and emerging markets was led by India and Brazil.
Meanwhile, nutrition, juice, dairy, and plant-based beverages grew by 6%, led by Maaza in India, Del Valle in Latin America, and Fairlife in the US.
Coca-Cola’s hydration, sports, coffee, and tea businesses saw unit case volume growth of 7%.
Sports drinks growth relied mainly on the strength of the performances of Bodyarmor and Powerade.
The coffee unit, on the other hand, grew by 15%, primarily driven by cycling the impact of Costa retail store closures in the UK and the continued expansion of Costa coffee globally.
Coca-Cola Company’s CEO and chairman, James Quincey said: “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.”
The company said it now expects organic revenue growth of 12% to 13% for the full year, up from its previous guidance of 7% to 8%.
But noted that commodity price inflation is expected to be steeper than previously forecast, and stuck by its outlook for comparable earnings per share to grow 5% to 6% from a year ago.
Accordingly, Coca-Cola announced a shift in the packing of Sprite from the famous green bottle to clear plastic beginning in August.
The change in look, ironically, is part of a push by the soft drink giant to go green citing that the clear bottles are better for recycling.
The color of the bottle is not the only change that will take effect beginning Aug. but also the launching of “a new visual identity system featuring a revamped logo and packaging design.”
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro-industry. SUBSCRIBE HERE.
