The Coca-Cola Company has witnessed net revenues accelerate by 42% in the second quarter, driven by the ongoing recovery from the pandemic in several markets.
The global beverage giant posted net revenues of $10.1 billion, with 26% growth in concentrate sales and 11% price/mix growth.
Coca-Cola’s second quarter results represent a significant recovery by the business where coronavirus-related uncertainty is easing, and comes after it saw slight recovery in Q1 with 5% growth to $9 billion.
The owner of Sprite and Smartwater particularly benefitted from the rebound of its away-from-home channels as restrictions abated in certain markets.
As a result, the company has updated its full-year guidance and expects to deliver organic revenue growth of 12-14%, compared to its previous predictions of high single digits.
In the quarter, organic revenues went up 37%, while operating income rose by 52%. Global unit case volume benefitted from the recovery and increased 18%, but was still partially offset by the impact of a resurgence of Covid-19 in some markets.
Sparkling soft drinks posted 14% growth in the quarter with strong performance in the US, India and Brazil – sparkling flavours went up by 19% driven by both Sprite and Fanta, while the company’s trademark Coca-Cola drink rose by 12%.
Coca-Cola’s coffee category increased significantly by 78% due to the reopening of Costa retail stores in the UK. Meanwhile, tea witnessed more modest growth at 19% led by the US, Japan and Brazil markets.
The company’s nutrition, juice, dairy and plant-based beverages category grew 25% thanks to strong performance by its Minute Maid and Fairlife brands. Meanwhile, Coca-Cola’s Powerade brand in North America drove the sports drink category to rise by 35%.
In Q1, Europe, Middle East & Africa unit case volume grew 21%. The company’s Latin American division saw volume go up 12%, 17% in North America, 16% in Asia Pacific, and 25% in its bottling investments segment.
“Our results in the second quarter show how our business is rebounding faster than the overall economic recovery, led by our accelerated transformation,” said James Quincey, chairman and CEO of The Coca-Cola Company.
“We are executing against our growth plans and our system is aligned. We are better equipped than ever to win in this growing, vibrant industry and to accelerate value creation for our stakeholders.”
By Emma Upshall
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.