Coca-Cola tops estimates as diet drinks drives 5% organic sales growth

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

GTBank Extends Banking Hours Till 6pm

Guaranty Trust Bank, GTBank has announced the extension of its banking hours till 6 pm today, Monday, 20 January...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...
- Advertisement -
- Advertisement -

The Coca-Cola company has reported 5% growth in organic sales driven by consumer preference for healthier drink options such as Zero Sugar and Diet Coke, beating analysts’ expectations for sales and profits in the second quarter.

Reuters has reported that following the financials release, its shares rose 2.7%.

Positive earnings were attributed to its focus on globalizing its ‘health’ brands including stevia, dairy free, and low or no sugar range.

The company launched its dairy-free smoothie brand AdeZ in Europe, Coca-Cola Stevia No Sugar in New Zealand and it revamped its market campaign for Diet Coke in the UK after an initial launch in the US, all in a bid to boost sales.

Net income increased from US$1.37 billion in the previous quarter to US$2.32 billion while earnings from continuing operations rose 68% to 53 cents a share.

Global volume grew 3%, its strongest in five years pushed by the strong performance of its trademark Coca-Cola brand and Fuze Tea.

Read:  #EvaluatePR 14th Edition Commences In September

“We’re winning in the marketplace so far this year and our strategy’s on track,” Chief Executive Officer James Quincey said on a call with analysts.

“We’re getting strong first half overall revenue growth and volume growth with our Zero, Diet portfolio in the U.S., which is a part of our strategy to go forward. So good numbers, much better than before.”

Its water and sports drinks, which include brands like Powerade, grew 4%.

Organic sales growth was reported in Europe, Middle East & Africa and Latin America (7% and 11% respectively) while in North America, this dropped 1%.

Read:  Three imperatives for winning in Africa: An interview with Coca-Cola’s former President of Africa

Coca-Cola’s juice brands like Minute Maid weighed down volumes in the region has grown only by 1%.

The volume of Coke’s juice, dairy, and plant-based drinks dropped 6% due to decline in part to its shrunken juice boxes in response to increased costs of packaging and orange juice imports.

Read:  Nigerian Bottling Company Limited Announces 2017 Management Trainee Recruitment Programme

During the quarter, the company has prioritized innovative product offerings and dropped some of its less profitable juice brands as it seeks to become a total beverage company.

“I think the juice thing will start to improve as we get into the back half. We’ll do better competitively. And I think the consumer environment will adjust to the new packaging in the new price points,” said Quincey to analysts.

Revenue fell 8% to US$8.93 billion, but the company saying this was anticipated following efforts to divest its low-margin bottling operations as it works on refranchising.

Coca-Cola anticipates a 4% growth in organic revenue and at least 9% growth in adjusted net income for the year 2018.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Novel Coronavirus: Lagos alerts public, lists precautionary measures

…Says No Case Of Virus Reported In Nigeria The Lagos State Government has alerted the public to a new virus,...

African Development Bank President Akinwumi Adesina opens trading on London Stock Exchange

“My ringing of the bell here today marks the beginning of a new exciting, strategic, and impactful engagement.” – African Development Bank President Akinwumi...

Nickelback Celebrates 15th Anniversary of Hit Album All the Right Reasons with New Tour

"The production on the upcoming tour will bring the fire and fury that has been our calling card along with new surprises," Nickelback's Chad...

AXA Mansard Insurance Holds Board Meeting For Approval Of 2019 Audited Accounts

Pursuant to the post-listing requirements of the Nigerian Stock Exchange for quoted companies, AXA Mansard Insurance Plc hereby informs The Exchange (The Exchange), esteemed...

More Articles Like This