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

Must Read

Jumia in trouble over Fraud in Affiliate Scheme, JForce

E-commerce company, Jumia is currently enmeshed in a case of internal fraud involving its affiliate marketing programme, otherwise known...

UBA Board Proposes Interim Dividend, Okays H1 2019 Results

The Board of United Bank for Africa Plc, at its meeting of Thursday, August 22, 2019, considered and approved...

Innoson motors price list: cheap cars in Nigeria

Millions of Nigerians cannot allow buying a new car because it is too expensive. However, the biggest Nigerian car...
- 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:  Coca-Cola launches Journey Africa platform to engage consumers

“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:  Coca-Cola launches Journey Africa platform to engage consumers

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:  Kia Easter Fiesta! Come For Your FREE Vehicle Health Check, Surprise Gifts & More...

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.

LEAVE A REPLY

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

Facebook Celebrates ‘Icons Of Change’ From Across Sub-Saharan Africa With A Youth Gathering In Accra, Ghana

Facebook is bringing together 40 young leaders, developers, entrepreneurs and change-makers from across Sub-Saharan Africa, to a two-day event...

Devastation Is The Major Threat To Telecom Growth In Nigeria – NCC

The Nigerian Communications Commission (NCC), has known the destruction of telecom infrastructure as the biggest intimidation to the growth of the telecommunication industry in...

President Buhari Endorse Licensing Of Online TV & Radio Stations

President Muhammadu Buhari has signed wide-ranging improvements in Nigeria’s broadcasting industry, including the commissioning of online radio and television stations.Lai Mohammed, Nigeria’s Minister of...

MAGODO RESIDENTS APPLAUDS IKEJA ELECTRIC OVER IMPROVED POWER

Residents of Magodo Estate have acclaimed Ikeja Electric Plc (IE) for rendering constant electricity to customers within the Estate following the signing of the...

More Articles Like This