USA – The Coca-Cola Company has reported a 3 percent increase in net revenue to US$12.4 billion for the second quarter of 2024.
This growth was driven by a 9 percent increase in price/mix and a 6 percent rise in concentrate sales.
The company’s operating margin, including items impacting comparability, was 21.3 percent compared to 20.1 percent in the previous year. The comparable operating margin (non-GAAP) was 32.8 percent, up from 31.6 percent the prior year.
The margin expansion was attributed to strong business performance and the impact of refranchising bottling operations, partially offset by currency headwinds and increased marketing investments.
Coca-Cola’s unit case volume rose by 2 percent for the quarter, with international markets contributing significantly to this growth. Coca-Cola Zero Sugar recorded the highest growth at 6%, driven by increases in all geographic operating segments.
CEO James Quincey stated that the company performed well in an “ever-changing landscape” and continues to execute its “highly effective all-weather strategy” to respond effectively to unusual weather conditions.
In the Europe, Middle East & Africa region, unit case volume remained steady, while operating income grew by 11 percent. Comparable currency-neutral operating income (non-GAAP) increased by 32 percent, primarily driven by strong organic revenue growth, though partially offset by higher operating expenses and increased marketing investments.
Coca-Cola has updated its 2024 guidance, now expecting organic revenue growth of 9 percent to 10 percent, up from the previous forecast of 8 percent to 9 percent.
The company also raised its outlook for comparable earnings growth to a range of 5 percent to 6 percent, from a previous range of 4 percent to 5 percent.
CFO John Murphy attributed the updated guidance to the momentum of the business in the first half of the year and confidence in executing plans for the second half.
The company is exploring new product variations, such as Coke Spiced and Georgia Coffee, to cater to diverse tastes. It is also engaging younger consumers by sponsoring music festivals and sporting events, including the Euro 2024 Football Championship and the Paris Olympics.
Additionally, Coca-Cola announced the retirement of three longtime board members—Barry Diller, Alexis Herman, and Marc Bolland—effective August 1.
CEO James Quincey praised the contributions of the departing directors, acknowledging their distinct impact on the company’s success and wishing them well in their future endeavors.
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