Coca-Cola Earnings Amazes Analysts, Adds Healthy Drinks Options

The Coca-Cola Company, with its new CEO James Quincey reported on Wednesday a strong earnings report and the reported revenue even topped analysts’ forecasts.

More upbeat earnings forecasted for 2017

The beverage giant is seen to have a strong market position due to its global influence paired with a strong brand power. Its increasing international presence, solid international bottling network and remarkable cash standing help it to consistently conquer the beverage market. 

Also, on Wednesday, the beverage maker increased its full-year earnings outlook adjusting its earnings per share to 2%.

Coke to cut sugar from its products

Presently, more and more countries are contemplating of putting additional taxes on drinks containing high calories to fight the fast spreading of diseases like obesity and diabetes. Coca-Cola is into switching to healthier beverages. 

Sales volume of the company also showed an average rise in the low and no-calorie soda during the relevant quarter.

Coca-Cola Markets

The beverage maker is seen to be weaker on Latin American markets but such was offset by growth in volumes of Mexican and Spanish markets. Revenue was seen to grow by 3% as the company made efforts to increase revenue growth rather than focus on growing volume.

Strong Dollar and Coca-Cola

Due to a strong dollar, currencies abroad show weakness and it impacted the results for the company. Coke has been generating almost half of its sales abroad but the profits are being converted into dollars. 

Nonetheless, the total earnings of the company reached $9.702 billion against a forecast of $9.652 billion by analysts. Even the earnings per share was at 59 cents versus Thomson Reuters analysts’ consensus of 57 cents.

Coca-Cola’s New CEO

Former Coca-Cola CEO Muhtar Kent resigned from post last May and has been replaced by James Quincey (who was the COO at the time of Kent’s service). The second quarter results celebrate the first earnings report of Quincey as the new CEO. 

“Our second quarter results demonstrate continued progress against the strategic priorities we have laid out to accelerate the transformation of our business into a total beverage company with balanced growth across a consumer-centric portfolio. Not only did we see strong performance during the quarter in rapidly expanding areas of our Company, such as our innocent juice and smoothie business in Europe, our organic revenue growth in sparkling soft drinks was led by innovation in and marketing support for our low- and no-sugar options like Coca-Cola Zero Sugar, which continues to roll out around the world,” said Quincey following the earnings disclosure.

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