Coca-Cola raises outlook after increased demand

Beverage maker served as a major sponsor of the World Cup

Coca-Cola brand Diet Coke, Coke, Sprite, and Fanta. Picture: Bloomberg

Coca-Cola raised its full-year outlook, bolstered by demand last quarter while it served as a major sponsor of the World Cup.

Atlanta-based Coca-Cola now sees organic sales growth of 5%, compared with a previous forecast of 4% to 5%. It also raised its forecast for earnings-per-share growth to as much as 8%, up 1 percentage point.

The more optimistic view shows that Coca-Cola continues to gain traction among shoppers with a widening portfolio of beverages, including sugar-free soda, sports drinks, and water, at a time when the industry has seen consumers turn away from traditional full-calorie soft drinks. It also helps ease the transition to chief executive Henrique Braun, who took over the role from James Quincey earlier this year.

Shares of Coca-Cola rose 4.2% in premarket trading. The stock had gained 20% this year through Monday’s close, compared with a roughly 8% increase in the S&P 500 Index.

The company also topped earnings and sales expectations for last quarter, which included about half the five-week World Cup tournament.

In North America, where the World Cup was hosted, organic sales jumped 7%, more than even the most optimistic analyst estimate compiled by Bloomberg. North America accounted for about 40% of total sales last quarter, the most of any region.

The company’s media blitz to accompany the soccer showcase generated 9bn views for its brands on social media, supported by more than 2,500 content creators, according to the statement.

Buoyed by better a sales performance, comparable earnings per share jumped 11%, compared with a 4% increase last year. It was the second straight quarter of double-digit profit growth, a feat the company hasn’t accomplished since 2021.

Earlier this month, Coca-Cola suspended US operations of its Fairlife milk after a cyberattack. On Monday, the company said a majority of the division’s production had resumed.

Bloomberg