Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Coke, Fuze tea demand drive Coca-Cola's quarterly revenue beat

Published 01/30/2020, 08:46 AM
Updated 01/30/2020, 08:46 AM
© Reuters. Boxes of Coca-Cola are seen at a grocery store in Los Angeles

(Reuters) - Coca-Cola Co's (N:KO) quarterly revenue beat market expectations on Thursday, driven by the beverage maker's signature soda, Fuze teas and coffees in North America and emerging markets.

The Atlanta-based company has been pushing to launch more coffee, teas and low-sugar beverages to expand its offer of in-demand products as consumers move away from sugary drinks.

Earlier this month, Coke added dairy company Fairlife to its range of brands, giving Coca-Cola access to fastest-growing categories in the United States ranging from lactose-free to ultra-filtered milk.

The company said fourth-quarter revenue growth was led by its trademark Coca-Cola, that included products such as its caffeinated beverage Plus Coffee and Zero Sugar soda.

Organic revenue, a keenly watched metric that excludes currency fluctuations and acquisitions, climbed 7% during the quarter.

Volumes, a key indicator of demand, grew 3%, spurred by its Coca-Cola soda, with growth across all geographies. Volumes grew 4% for teas and coffee and 3% for sparkling soft drinks.

At the same time, rival PepsiCo (O:PEP) is preparing for the launch of its own coffee-cola beverage that has double the caffeine punch as regular soda.

Coca-Cola's shares were up about 2% in trading before the bell. The stock rose about 17% last year, compared with the broader S&P 500 Consumer Staples index (SPLRCS) and rival PepsiCo (O:PEP) which have each gained about 24%.

Net revenue grew 16% to $9.07 billion, beating analysts' estimate of $8.89 billion.

Coke projected 2020 organic revenues to grow about 5%, compared with the 6% rise it reported in 2019 and said it would continue to expand into new categories through acquisitions in 2020.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"That's a pretty good indication that they feel good about the year so far... this would be seen as setting up a strong year," industry expert and executive editor of Beverage-Digest, Duane Stanford, said.

For the year, Coca-Cola expects to record adjusted profit of $2.25 per share, a cent below analysts' forecast, according to IBES data from Refinitiv.

Excluding one-time items, Coca-Cola earned 44 cents per share in the fourth quarter ended Dec. 31, meeting Wall Street expectations.

Net income attributable to the company's shareholders rose to $2.04 billion, or 47 cents per share, in the fourth quarter ended Dec. 31, from $870 million, or 20 cents per share, a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.