Coca-Cola posts solid Q3 revenue on growing healthier drink sales

Mubasher: Coca-Cola on Friday reported third-quarter revenue that beat analysts’ forecasts led by healthier options such as Zero Sugar soda, according to the company’s earnings report.

Coca-Cola generated $2.59 billion in net income in Q3-19, or $0.60 in diluted earnings per share (EPS), versus $1.88 billion or $0.44 in Q3-18.

Excluding impairment charges, one-off gain from the sale of a New York building and other items, Coke’s EPS were $0.56

The soda giant’s net sales came in at $9.51 billion in the three-month period ended last September, rising 8% year-on-year from $8.78 billion and above $9.4 billion expected by analysts polled by Refinitiv.

As soda consumption retreats in the US, Coca-Cola has been boosting sales through more focus on healthier options with less sugar and smaller packaging.

Coke Zero Sugar posted again a double-digit sales increase as well as smaller size cans, boosting global growth by solid 3% and boosting in turn sparkling soft drinks by 2%.

Furthermore, the beverage maker expanded its drink portfolio, by launching its Coca-Cola Plus Coffee brand in over 20 markets outside the US.

Looking ahead, Coca-Cola expected full-year growth of organic revenues to be at least 5%.

The company also issued a partial projection for the fiscal year 2020, in which it estimated a range of 1% to 2% currency headwind to impact its revenue, and a 2% to 3% currency headwind to hit its comparable operating income.