Coca-Cola sustains growth in Q2, with help from reformulated Zero sugar drinks

Coca-Cola on Wednesday reported its second quarter results for 2018, with a profit growth of 69% to $2.3bn, from $1.37bn in the previous year, sustaining a momentum that began in the first quarter.

The Atlanta-based soft drinks giant credits its strong performance to rising volume of its trademark Coke as well as sparkling soft drinks. Volumes of its Coke branded soft drinks grew 2%, helped by growth of Coca-Cola Zero Sugar and Diet Coke, while sparkling soft drinks rose 2%, with water, enhanced water and sports drinks growing 4%.

The company noted that volumes of its juice brand declined due to higher cost of packaging which caused the firm to shrink packages, and in coffee and tea.

Coke said that revenue for the second quarter declined by 8% to $8.9bn, blamed on a 15% “headwind” from refranchising of its U.S. bottling operations. In the six months to the end of June, sales fell 12% to $16.6bn.

Speaking on the results, Coca-Cola President and CEO, James Quincey, said: “We’re encouraged with our performance year-to-date as we continue our evolution as a consumer-centric, total beverage company.

“We have the right strategies in place and remain focused on achieving our full year guidance.”

The company said it would stand by its 2018 profit outlook and expects full year organic revenue to be at least 4%.

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