The demand for Coke’s Fuze tea resulted in beating quarterly revenue expectations

On Thursday, the quarterly revenue of Coca-Cola Co. (KO.N) beat market expectations. It was driven by the demand for the beverage maker’s signature soda, Fuze teas, and coffees in North America and emerging markets.

The company based in Atlanta has been working to roll out more teas, coffee and beverages with low-sugar to increase its offer of in-demand products as consumers are getting more health-conscious and shifting away from sugary drinks.

Coke acquired Fairlife

Coke included Fairlife, a dairy company to its range of brands, earlier this month. This provided Coca-Cola access to quickest-growing categories in the United States ranging from ultra-filtered milk to lactose-free.

The company pointed out that its growth in revenue for the fourth quarter was led by its trademark Coca-Cola, many more products such as its caffeinated beverage Zero Sugar soda and Plus Coffee also supported the revenue of Q4.

Organic revenue, closely observed metric that is not included in currency acquisitions and fluctuations, increased by 7% during the quarter.

A key indicator of demand termed as volumes, rose 3%, triggered by its Coca-Cola soda, with expansion across all geographical locations. Volumes increased 4% for coffee and teas and 3% for sparkling soft drinks.

The numbers are speaking!

At the same time, Coke’s biggest rival, PepsiCo (PEP.O) is poising for rolling out its coffee-cola beverage that has doubled the punch of caffeine as compared to regular soda.

Coca-Cola’s shares went up 2% in trading before the bell. Last year, the stock rose about 17%, compared with the wider S&P 500 Consumer Staples index. SPLRCS and rival PepsiCo (PEP.O) which have each gained about 24%.

Net revenue increased by 16% to $9.07 billion, surpassing the estimate of $8.89 billion by different analysts.

Coke projected 2020 organic revenues to grow about 5%, compared with the 6% rise it reported in 2019 and said it would continue to expand into new categories through acquisitions in 2020.

“That’s a pretty good indication that they feel good about the year so far… this would be seen as setting up a strong year,” Duane Stanford, executive editor of Beverage-Digest and industry expert, said.

For the year 2020, Coca-Cola wishes to register an adjusted profit of $2.25 per share, a cent below to forecast by analysts, according to IBES data from Refinitiv. Ignoring one-time items, Coca-Cola has managed to earn 44 cents per share in the fourth quarter that wrapped up on December 31, syncing with Wall Street expectations.

Net income owing to the company’s shareholders increased to $2.04 billion, or 47 cents per share, in the fourth quarter ended December 31, from $870 million, or 20 cents per share, a year earlier.

Hello, I’m Anna Yeo. If you like my news coverage, please drop a good word in my inbox. I’m journalist by profession and have been part of many major reporting across the globe. I like to write crisp and factual news. I have completed my masters degree in journalism. Feel free to contact me at [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *