Coca-Cola reports strong second quarter operating results
Quarterly net revenues grew 6% to $10.0 billion
The Coca-Cola Company reported strong operating results in the second quarter of 2019, driven by consumer-centric innovation, solid core brand performance and improved execution in the marketplace. Reported net revenues and organic revenues both grew 6% through balanced volume and price/mix, with all operating segments contributing to organic revenue growth.
Quarterly net revenues grew 6% to $10.0 billion. Operating margin, which included items impacting comparability, was 29.9% versus 29.4% in the prior year. EPS grew 12% to $0.61.
“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.”
Strong performance for the quarter was driven by sparkling soft drinks, led by 4% volume and transaction growth in trademark Coca-Cola. Coca-Cola Zero Sugar continues to perform well, with a seventh consecutive quarter of double-digit volume growth globally. Quarterly performance was further driven by innovation, such as Coca-Cola Plus Coffee, and a modernized marketing strategy for today’s consumers. The company reached a first-of-its-kind partnership with Netflix to temporarily bring back 1985’s New Coke for the July 4 debut of season 3 of the hit series “Stranger Things.”
During the quarter, the company launched the first-ever Costa Coffee ready-to-drink chilled product in Great Britain, marking the first major introduction since Coca-Cola acquired Costa earlier this year. The company plans to roll out the product in additional markets in the second half of the year. The brand delivers an authentic coffee taste experience with 30% less sugar than most RTD coffees in Costa’s core market of Great Britain. The Costa Coffee brand is also expanding through a new agreement with Coca-Cola HBC AG. The agreement will address a broad range of consumer and customer needs across multiple channels and occasions, including roast and ground coffee, RTD offerings and vending. The bottler plans to introduce Costa Coffee in at least 10 markets in 2020.
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