Sector News

Coca-Cola revenues jump 42% in second quarter amid strong recovery

July 25, 2021
Food & Drink

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


comments closed

Related News

September 25, 2022

Coca-Cola names new president of global ventures

Food & Drink

The Coca-Cola Co. has promoted Evguenia (Jeny) Stoichkova to president of global ventures, effective Jan. 1, 2023. Ms. Stoichkova joined Coca-Cola Bulgaria in 2004 and was most recently the president of the company’s Eurasia & Middle East division, a role she has held since 2021.

September 25, 2022

Perfect Day allies with Onego Bio to speed-up launch of animal-free eggs

Food & Drink

US-based Perfect Day, is partnering with Onego Bio, which specializes in creating animal-free eggs, aiming to accelerate the timeline to bring the eggs to the market. The business, with the use of its technology, plans to commercialize animal-free ovalbumin, the most abundant egg white protein extracted through precision fermentation.

September 25, 2022

EU fails on food waste: Report reveals bloc discards more than it imports

Food & Drink

Food waste costs the EU €143 billion per year (US$141.7 billion), with a report by Feedback EU raising the alarm of how it’s vital to reduce waste from farm to fork 50% by 2030 and the only way this will be achieved is by enforcing a mandatory directive forcing the food industry to do better and retailers to pay a tax of food waste.