DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

Coca-Cola Tops Estimates On Demand For Sugar-Free Sodas

By Dayeeta Das
Share this article
Coca-Cola Tops Estimates On Demand For Sugar-Free Sodas

Coca-Cola Co reported quarterly sales and profit that beat Wall Street estimates on Tuesday, as more consumers reached for its sugar-free sodas, premium waters and sports drinks.

Coke, like rival PepsiCo Inc, has been building up its portfolio of non-carbonated drinks and stepping up efforts to reduce sugar in its beverages as consumers seek healthier options.

The company paid $5.1 billion (€4.5 billion) for the world's second-largest coffee chain Costa earlier this year and took a stake in Kobe Bryant-backed sports drink BodyArmor in a bid to court a younger demographic that prefers sipping lattes to gulping big sodas.

Demand For Low-And No-Calorie Drinks

Organic revenue, or sales from its core beverage business, rose 6% in the third quarter, with Diet Coke, Coke Zero and sparkling water the top contributors.

Volumes, a key indicator of demand, grew 2% in the quarter on strong performance of its trademark Coca-Cola brand and growth in the low- and no-calorie offerings of Sprite and Fanta, the company said.

ADVERTISEMENT

Sales of sodas grew 2%.

Net income attributable to the company's shareholders rose to $1.88 billion (€1.7 billion), or 44 cents per share, in the third quarter ended 28 September from $1.45 billion (€1.3 billion), or 33 cents per share, a year earlier.

Excluding one-time items, Coca-Cola said it earned 58 cents per share, beating analysts' average estimate by 3 cents.

Revenue fell 9% to $8.25 billion, due to the disposal of its low-margin bottling operations.

ADVERTISEMENT

Analysts had estimated sales of $8.17 billion, according to Refinitiv estimates.

The company's shares were up 1.4% in premarket trading.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.