Beverages giant Coca-Cola Co reported Wednesday a 48 per cent increase in profit for the second quarter from last year on a revenue growth of 42 per cent and improved margins.
Adjusted earnings per share and quarterly revenues topped analysts’ expectations. The company also raised its adjusted earnings and organic revenue growth outlook for the full-year 2021.
Net income attributable to shareowners of Coca-Cola for the second quarter increased 48 pe rcent to 2.64 billion dollars or 0.61 dollar per share from 1.78 billion dollars or 0.41 dollar per share in the prior-year quarter.
Excluding items, comparable earnings per share were 0.68 dollar, compared to last year’s 0.42 dollar. On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of 0.55 dollar per share for the quarter.
Analysts’ estimates typically exclude special items.
Net operating revenues for the quarter increased 42 per cent to 10.13 billion dollars from 7.15 billion dollars in the same quarter last year, driven by a 26 per cent growth in concentrate sales and an 11 per cent growth in price/mix.
The Street expected revenue of 9.25 billion dollars for the quarter. Organic revenues also grew 37 per cent in the quarter.
Looking ahead to the third quarter, Coca-Cola projects comparable net revenues on an adjusted basis to be impacted by 2 percent currency tailwind based on the current rates and including the impact of hedged positions.
Comparable earnings are expected to include an approximate 3 to 4 per cent currency tailwind.
For fiscal 2021, the company now projects comparable earnings to grow in a range of 13 to 15 per cent from the 1.95 dollar per share reported in 2020, with a 2 to 3 per cent currency tailwind.
It also projects organic revenue growth of 12 to 13 per cent, with a 1 to 2 per cent currency tailwind.
Previously, the company expected comparable earnings to grow in a range of high single digits to low double digits percentage compared to 1.95 dollar per share in 2020, with a 2 to 3 per cent currency tailwind.
It also expected organic revenue growth in the high single digit percentage, with a 1 to 2 per cent currency tailwind.
The Street is looking for earnings of 2.18 dollars per share on revenue growth of 11.8 per cent to 36.90 billion dollars for the year.