Article Date 18/10/2019

Image from : Jasper Juinen | Bloomberg | Getty Images

Coca-Cola jumps as bets on new products pay off

Source Bloomberg

Coca-Cola Co. climbed after low-sugar offerings like Coca-Cola Zero Sugar and international sales drove brisk revenue growth in the third quarter.

The beverage giant said unit case volume grew by two per cent, while net revenue expanded eight per cent to US$9.5 billion. The key metric of organic revenue, which strips out some items like currency effects, jumped five per cent - higher than analysts' average estimate for a 4.1-per-cent gain.

  • Earnings per share: 56 cents, adjusted, vs. 56 cents expected
  • Revenue: $9.5 billion vs. $9.4 billion expected
  • Coke reported fiscal third-quarter net income of $2.6 billion, or 60 cents per share, up from $1.8 billion, or 44 cents per share, a year earlier.

Excluding impairment charges, gains from the sale of a New York building, and other items, the beverage giant earned 56 cents per share, in line with the 56 cents per share expected by analysts surveyed by Refinitiv.

Net sales rose 8% to $9.5 billion, topping expectations of $9.4 billion. Organic revenue grew by 5%, helped by higher prices and customers buying more expensive drinks.

Coke once again updated its 2019 outlook for organic revenue. It now expects at least 5% growth after telling investors last quarter to expect organic revenue growth of 5%.

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