The Coca-Cola Company (NYSE: KO) reported better-than-expected revenue for the third quarter of 2019 while EPS came in line with estimates. Shares were up 1.6% in premarket hours on Friday.
Total revenue grew 8% year-over-year to $9.5 billion, coming ahead of estimates of $9.4 billion. Organic revenue rose 5%. The increase in revenue was driven by a 6% growth in price/mix.
Net income attributable to shareholders grew 38% year-over-year to $2.5 billion. GAAP EPS grew 37% to $0.60. Adjusted EPS fell 2% to $0.56 but matched forecasts of $0.56.
During the quarter, Coca-Cola continued to gain market share in non-alcoholic ready-to-drink beverages. The company saw retail value growth in the US market, driven by double-digit volume growth in Coca-Cola Zero Sugar. The launch of Coca-Cola Plus Coffee in more than 20 markets internationally also helped drive growth for the company.
Strong revenue growth in core sparkling soft drink brands continues to fuel momentum within the beverage portfolio. Coca-Cola saw revenue growth across all its regions during the quarter with the exception of Europe, Middle East & Africa, which remained flat. The acquisition of Costa Coffee drove significant revenue growth in the company’s global ventures segment.
For the full year of 2019, the company expects at least a 5% growth in organic revenues and at least a 12% growth in comparable currency neutral net revenues. EPS growth is expected to be in the range of down 1% to up 1% versus 2018.
For full-year comparable net revenues, Coca-Cola expects a 4-5% currency headwind based on current rates and including the impact of hedged positions. For Q4 2019 comparable net revenues, the company sees a 12% tailwind from acquisitions and divestitures as well as a 3% currency headwind.
Coca-Cola’s rival PepsiCo (NYSE: PEP) reported third quarter results earlier this month, beating estimates for revenue and earnings.