Riding on the success of its diet beverages portfolio, Coca-Cola (KO) reported better-than-expected second-quarter results before the opening bell on Wednesday. The company reported net income of $2.32 billion, or $0.53 a share, higher than $1.37 billion, or $0.32 a share, it reported a year ago.
Excluding one-off items, the company reported earnings of $0.61 a share topping street consensus of $0.60 a share.
Net revenue declined 8% primarily due to the impact of refranchising its bottling operations. However, this decline was lower than the 12% slide expected by analysts. Revenue came in at $8.9 billion, whereas analysts had on an average projected $8.58 billion.
Volumes improved 2% growth during the quarter led by trademark Coca-Cola, including continued double-digit growth for Coca-Cola Zero Sugar, and Fuze Tea. Also, the company’s no-sugar sparkling soft drink portfolio in North America accelerated from the first quarter, resulting in 7% retail value growth. This was again driven by Coca-Cola Zero Sugar and Diet Coke.
“We’re encouraged with our performance year-to-date as we continue our evolution as a consumer-centric, total beverage company,” said James Quincey, President and CEO of The Coca-Cola Company. “We have the right strategies in place and remain focused on achieving our full-year guidance.”
In North America, the company expanded coverage of its digital MyCoke platform, which allows retail customers to schedule future orders online. The MyCoke platform has led to over a 5% increase in sales revenue when compared to the orders placed via traditional call centers, the company said.
This year, the company also launched its first alcoholic beverage in Japan, marking the company’s first foray into alcohol category. This way, the soda giant is emphasising its desire to appeal to a different fragment of the market.