Coca-Cola Sales Boosted by Soda Gains, Coffee Push -- Update

By Charlie McGee and Allison Prang 

Coca-Cola Co.'s quarterly profit and sales rose, boosted by higher demand for its namesake soft drinks and the introduction of coffee, energy drinks and other products.

Organic revenue, which excludes currency swings, acquisitions and divestitures, increased 6%, with gains in each of Coke's four major geographies.

Sagging demand for sugary drinks has driven Coke's push to roll out Coke Zero Sugar, new flavors and diversify its offerings in recent years.

The product launches have helped revive its core soda business, where volumes rose 4% in the quarter. Volumes of Coke Zero Sugar, a reformulated diet soda, rose more than 10% globally, the company said Tuesday.

John Murphy, Coke's chief financial officer, said Orange Vanilla Coca-Cola, rolled out earlier this year as the first new flavor in a decade, performed strongly in the U.S., while Coca-Cola Plus Coffee helped sales in Europe.

Mr. Murphy said the company's traditional soda still sells well in lower per capita markets. He said growth in India was strong, but in Mexico it has been "a little slower than we would have liked."

The company now expects organic revenue to rise by 5% in 2019. It had previously expected it to increase by about 4%. Coca-Cola also raised its guidance for operating income on a currency neutral basis, and now expects it to increase between 11% and 12%, instead of between 10% and 11%.

Coca-Cola's $10 billion in sales during the second quarter was slightly higher than expectations of $9.9 billion from a FactSet analyst consensus.

Coca-Cola posted per-share earnings of 61 cents. Adjusted earnings were 63 cents a share. The FactSet consensus for adjusted earnings was 61 cents a share.

Coke has expanded into the coffee business, buying British coffee-shop chain Costa that operates thousands of cafes and launching a coffee-infused version of its flagship soda in some Asian markets. It has also tried to revive sales in its home market with new soda flavors, such as Orange Vanilla Coca-Cola.

Shares of Coca-Cola gained about 3% in premarket trading.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

July 23, 2019 09:03 ET (13:03 GMT)

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