Coca-Cola (NYSE: KO) announced its fiscal 2019 earnings ahead of the opening bell on Tuesday, July 23. The beverage giant beat on both the top and bottom line, sending its shares up 2.89% to $52.75 in premarket trade.
Sales volume increased 3% on a year-over-year basis, while retail sales rose 6%. Coke said the strong performance was driven by sparkling soft drinks, led by 4% volume and transaction growth in its namesake brand during the quarter. The company also attributed the results to a modernized marketing strategy for consumers, and innovation, such as Coca-Cola Plus Coffee.
Coke launched the first-ever Costa Coffee ready-to-drink chilled product in the UK during the quarter, marking the first major introduction since the company acquired Costa in January this year.
Atlanta-based Coke also upped its 2019 forecast for revenue and now views organic revenue growth of 5%. Shares of the company have gained more than 8% since the beginning of the year and 13% in the past 12 months.
KO Earnings & Outlook
Coke reported net income of $2.6 billion, or $0.61 per share, compared with $2.3 billion, or $0.54 per share in the same period last year.
Adjusted for one-time costs and gains, earnings came to $0.63 per share. Analysts were expecting the company to post adjusted earnings $0.61 per share, according to data compiled by Refinitiv.
Net sales came in at $10.0 billion, up from $9.4 billion in the second-quarter of the previous year. On average, analysts polled by Refinitiv were forecasting revenue of $9.99 billion in the June quarter.
Coke expects full-year per-share earnings to rise or fall by 1%, and organic revenue to grow 5%.
Coca-Cola CEO Comments
“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 chief executive officer of the company. “Our progress is positioning the company to create more value for all of our stakeholders, including our shareowners.”
Coca-Cola Company Profile
The Coca-Cola Company is the largest nonalcoholic beverage company in the world, with over $30 billion in annual revenue. Its portfolio includes a variety of carbonated and noncarbonated brands, including Coca-Cola, Diet Coke, Fanta, Sprite, Minute Maid, Powerade, and Dasani.
The firm has both concentrate and finished product operations, with concentrate sales contributing nearly two thirds of revenue. Trademark Coca-Cola contributes 45% of unit case volumes worldwide.
Coca-Cola generates the majority of its revenue outside of the United States. The acquisition of Costa, closed in January 2019, should bolster its presence in the coffee category, particularly in the U.K., where Costa has more than a one third share of coffeehouses. – Warrior Trading News