Coca-Cola reports higher-than-expected quarterly earnings and revenue
U.S. beverage giant Coca-Cola on Tuesday reported its fiscal second quarter earnings and revenue, both of which beat expectations.
Coca-Cola's adjusted earnings per share in the second quarter is 63 cents, a press release issued by the company showed. That compared to 61 cents expected by analysts surveyed by Refinitiv.
The company's revenue was 10 billion U.S. dollars in the three-month period, slightly higher than expectations of 9.99 billion dollars.
The company based in Atlanta of Georgia reported net income of 2.61 billion dollars, or 61 cents per share, up from 2.32 billion dollars, or 54 cents per share, a year earlier.
The company updated its full-year forecast for revenue, now expecting organic revenue growth of 5 percent rather than 4 percent.
"Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry," chairman and CEO James Quincey said in a statement.
Speaking during CNBC's "Squawk on the Street" program Tuesday, Quincey said despite the upbeat quarterly report, the company "saw some clouds on the horizon, too."
"But the storm never arrived, so by sticking to our plan, by executing against our strategy, we've been able to deliver stronger momentum than even we were expecting," he added.
One of the highlights in the beverage giant's strategies is to continue expanding the reach of its Coca-Cola Energy drink.
"The product has shown early signs of success. Coca-Cola Energy is now available in 14 countries, including recent launches in Japan, Australia and South Africa," read the press release. "The company expects to offer Coca-Cola Energy in 20 markets by the end of 2019, including Mexico and Brazil."
In July, the company won an arbitration that allowed it to sell the energy drink under the terms of its contract with Corona, California-based Monster Beverage.
"We've got a great partnership with Monster," Quincey told CNBC, adding that his company sees Coca-Cola Energy being "a more inclusive brand" with a comparatively softer flavor. "We really do think this is a complementary approach for the Coke system, and it will work for our partners, too."
From a region-specific perspective, North America was the only region that reported net revenue growth, whereas net sales in the Asia Pacific and Europe, Middle East and Africa remained flat for the quarter, largely due to the impact of currency.
Referring specifically to China, Quincey said albeit some "headline softening," there still has been growth in the region. "What we see is continued consumer demand across a broad range of consumables."
"Ultimately, for the long-term growth trajectory of the Coke system, we see China, the ASEAN countries, the Indian Subcontinent and Africa as four real large opportunities to extend our growth into the future," he said.