The Atlanta-based soft drink giant said its revenue jumped
42% to $10.1 billion in the April-June period. That was well ahead of the $9.3
billion in sales that Wall Street had forecast, according to analysts polled by
FactSet.
It was a very different story than the second quarter of
2020, when Coke’s sales sank 28%. Coke said sales of its trademark Coca-Cola
are now running ahead of 2019 levels thanks to growing demand in Europe, Africa
and Latin America.
Case volumes grew 18% to a level that was even with 2019.
Coke said some markets, like China, Brazil and Nigeria, are already running
ahead of 2019 demand, while others, like India, continue to be under pressure
due to the pandemic.
In North America, case volumes rose 17% as restaurants,
movie theaters, stadiums and other venues reopened or dropped capacity
restrictions. Coke has historically booked half its revenue from such
businesses, which were crushed by the pandemic.
Demand for Powerade and other sports drinks was particularly
strong, with case volumes up 35% from the same period last year. Coffee sales
surged 78% as the company’s Costa retail stores reopened in the United Kingdom.
Coke’s net income surged 48% to $2.6 billion. Adjusted for
one-time items, the company earned 68 cents per share. Analysts had forecast
earnings per share of 56 cents.
The company raised its full-year earnings forecast based on
its results. It now expects organic revenue growth of 12% to 14% in 2021 __ up
from high single-digit growth __ and earnings per share growth of 13% to 15%
Coke’s shares were up 2% in premarket trading.
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