Coca-Cola Raises 2024 Outlook Amid Rising Global Demand

Coca-Cola announced an optimistic revision of its full-year outlook on Tuesday, citing increased global demand for its beverages in the second quarter. The company now anticipates organic revenue growth of 9% to 10% for 2024, an increase from its previous forecast of 8% to 9%. Additionally, Coca-Cola has adjusted its expectations for comparable earnings growth to a range of 5% to 6%, up from 4% to 5%. CFO John Murphy attributed this updated guidance to the strong momentum observed in the first half of the year and expressed confidence in the company’s execution plans for the latter half. In the second quarter, Coca-Cola reported a net income of $2.41 billion, or 56 cents per share, a decline from $2.55 billion, or 59 cents per share, in the same period last year. However, net sales increased by 3% to $12.36 billion, with organic revenue rising 15% when excluding acquisitions, divestitures, and foreign currency effects. The company’s unit case volume grew by 2%, driven primarily by international markets, although North America experienced a 1% decline in volume. The decline in North American volume was attributed to decreased sales in several categories, including water, sports drinks, and traditional sodas, which overshadowed growth in juice and plant-based beverages. To stimulate demand, Coca-Cola is collaborating with food service partners to promote combo meals that pair food and drinks. Coca-Cola's sparkling soft drinks division, which includes its flagship soda, saw a 3% increase in global volume, largely due to strong performance in the Asia-Pacific and Latin America regions. However, the company is also preparing for potential challenges, forecasting a 4% currency headwind to its comparable net sales and an 8% headwind to its comparable earnings per share.