Coca-Cola shares surged 5% during United States trading on Tuesday to close at a record high after the beverage giant delivered better-than-expected second-quarter earnings and revenue, supported by robust global demand and a stronger full-year outlook.
The company reported adjusted earnings per share (EPS) of US$0.97, beating analysts' expectations of $0.93, while revenue rose to $13.37 billion, ahead of the $13.17 billion consensus forecast.
Chief Executive Henrique Braun credited strong consumer demand and increased global exposure during the FIFA World Cup for helping drive sales.
“We had, during the World Cup, really a great opportunity for us to shine our brands,” Braun said on CNBC's Squawk on the Street.
“During the hydration breaks, Powerade was there.”
The stronger quarter prompted Coca-Cola to raise its full-year guidance. The company now expects comparable earnings per share to grow between 9% and 10%, up from its previous forecast of 8% to 9%. It also projects organic revenue growth of about 5%, at the upper end of its prior guidance range of 4% to 5%.
Second-quarter net income increased to $4.43 billion, or $1.03 per share, from $3.81 billion, or $0.89 per share, in the same period a year earlier.
Net sales climbed 7% to $13.38 billion, while organic revenue, which excludes acquisitions, divestitures and currency movements, rose 6%.
Global unit case volume increased 5%, with every geographic operating segment reporting higher volumes, highlighting broad-based consumer demand despite ongoing economic uncertainty.
Braun said the consumer backdrop remains mixed as households continue to navigate higher living costs.
“The economy is strong in many places, yet many consumers face inflationary pressures, geopolitical uncertainty and economic challenges,” Braun said during the company's earnings call.
“They are evaluating how they shop, what they value and what they want to put in their basket.”
Following Tuesday's rally, Coca-Cola's market capitalisation stood at approximately US$379.8 billion.
