Coca-Cola beat quarterly revenue and revenue estimates on Tuesday after consumers bought more of their water, sports drinks and its namesake Zero Sugar beverages.
- Earnings per share: 48 cents, adjusted, versus 46 cents expected
- Revenue: $ 8.02 billion vs. $ 7.888 billion expected
The drink giant reported a net income of $ 1
From continuing business, Atlanta-based company has earned 48 cents per share, peaked at 46 cents per share expected by analysts surveyed by Refinitiv.
Net sales increased by 5% to $ 8.02 billion and hit expectations of $ 7.88 billion. The company attributed 2% of revenue growth to timing in connection with the build-up of bottle holdings to ensure Brexit uncertainty.
Unit case volume – number of unit cases of coke drinks sold to customers, which help measure growth without affecting price and currency changes – grew 2%, helped by key markets in Asia and Europe. Asia returned to higher single-digit growth after a fourth quarter, which increased the unit-rate increase by only 2%.
"In the fourth quarter, fourth quarter looks like more of a blip," Quincey told analysts at the conference call, attributing the better figures to a renewed appetite for their juice in India and its monolingual waters in China.
Argentina was again a bad place, with the volume declining by two digits as the country's setback continued to 2019. The North America Unit case volume declined by 1%, while net sales for the region increased by 1%. The company owed the effect of price increases and package initiatives, as well as the schedule of Easter, as it was at the end of the year.
The darkness drinks in deep-fat meat increased by 1%. The Coca-Cola brand continues to function well globally, thanks to Coca-Cola Zero Sugar's two-digit growth in the sixth quarter of the quarter. In February, the brand launched its first new taste in more than a decade: Orange Vanilla.
"Constant innovation is crucial to sustained growth," Quincey said.
This year, the company will introduce Coca-Cola Coffee to more than 25 markets around the world after successful testing in Asia. The drink will be thrown as a way to help consumers get through the "afternoon decline", according to Quincey.
The company's water, increased water and sports drinks, saw the case volume grow by 6%, driven by consumer eagerness for smaller, immediate consumption packages.
The company also completed its $ 5.1 billion acquisition in the British coffee chain Costa over the three months ended March 29. Coca-Cola plans to introduce Costa ready-to-drink products in the second quarter. Quincey said the launch is likely to be concentrated in markets that are already familiar with the brand.
After the company told investors in the quarter that earnings in 2019 could fall by as much as 1%, the stock had its worst day for more than a decade. Quincey attributed the gloomy outlook for currency fluctuations, Fed rate hikes and tax rate changes. The company ticked off its full-year perspective, provided earnings per share could fall or increase by 1% and organic revenue growth by 4%.
Following Coke's annual meeting on Wednesday, Quincey will become chairman of the company as long as he is reelected as a director. Quincey takes over from Muhtar Kent, who served as CEO from 2008 to 2017.