Coca-Cola surpassed its quarterly revenue and earnings on Tuesday after consumers bought more water, sports drinks and Zero Sugar.
From continuing operations The regional-based company generated 48 cents a share, outperforming 46 cents per share expected by analysts surveyed by Refinitiv.
Net sales increased 5% to $ 8.02 billion, exceeding expectations of $ 7.88 billion. The company attributed 2% of revenue growth to timing related to the build-up of bottlenecks to hedge Brexit uncertainty.
Product Quantity – The number of Coladrinks piece goods sold to customers, which measures growth without impacting price and currency changes, grew 2%, driven by major markets in Asia and Europe. Asia returned to higher single-digit growth after a fourth quarter of just 2% growth.
"The fourth quarter looks more like a hit in the first quarter," Quincey told analysts in the conference call The better numbers were attributed to a renewed appetite for his juices in India and single-serve waters in China.
Argentina was again a sore point and volumes plummeted in double digits as the country's recession continued in 2019. The volume of general cargo declined 1%, while sales in the region rose 1%. The company was responsible for the impact of price increases and packaging initiatives, as well as the date of Easter, which landed at the end of this year.
The emergence of sparkling wine drinks for soft drinks increased by 1%. The Coca-Cola brand continues to perform well globally, thanks to double-digit growth for Coca-Cola Zero Sugar for the sixth straight quarter. In February, the brand launched its first new note on the market for over a decade: Orange Vanilla.
"Continuous innovation is critical to sustainable growth," said Quincey.
This year, the company will launch Coca-Cola Coffee in more than 25 markets worldwide after successful testing in Asia. According to Quincey, the drink is said to help consumers get through the "afternoon sun".
The company's water, water and sports beverage businesses saw a 6% increase in case volume fueled by consumer appetite for smaller instant consumption packages.
The company closed the British coffee chain Costa at $ 5.1 billion in the three months ended March 29. Coca-Cola plans to launch Costa Ready-to-Drink products in the second quarter. Quincey said the launch is likely to focus on markets that are already familiar with the brand.
After announcing to investors in the last quarter that profits in 2019 could fall by as much as 1%, its stock had the worst day in more than a decade. Quincey attributed the gloomy outlook to currency fluctuations, Fed rate hikes and changes in tax rates. The company reiterated its full-year outlook and predicted that earnings per share would fall or increase by 1% and organic sales growth could increase 4%.
After Coke's annual meeting on Wednesday, Quincey will be re-elected director as long as the company's chairman. Quincey succeeds Muhtar Kent, who served as CEO from 2008 to 2017.