Jul 21, 2021
Coca-Cola revenue jumps 42 percent in Q2 as re-openings gain momentum
This news has been received from: New York Post
All trademarks, copyrights, videos, photos and logos are owned by respective news sources. News stories, videos and live streams are from trusted sources.
More On: coca-cola Coca-Cola to change Coke Zero — and consumers are having New Coke flashbacks PepsiCo sees rising profits — and prices — amid effervescing economy Cristiano Ronaldo’s Coca-Cola diss helps knock $4B off market value Ronaldo’s press conference takes a weird twist — and Tom Brady approves
The Atlanta-based soft drink giant said its revenue jumped 42 percent to $10.1 billion in the April-June period. That was well ahead of the $9.3 billion in sales that Wall Street had forecast, according to analysts polled by FactSet. It was even slightly better than the same period in 2019.
It was a very different story than the second quarter of 2020, when Coke’s sales sank 28 percent. Coke Chairman and CEO James Quincey said the recovery remains uneven, but as vaccination rates increase, consumers are returning to their pre-pandemic routines.
“We’ve always believed that humans are social creatures and that once the restrictions come down and the panorama of the virus allows people the confidence to go out, they will go back out,” Quincey said Wednesday during a conference call with investors. “You can see very much beginning to happen in the second quarter.”
Even as people go out more, sales for home consumption remain elevated, Quincey said. The company is watching to see if habits that developed during the pandemic stick.
“That extra consumer interaction at home has created some new behaviors and engagement with brands that may well be enduring,” he said.Coca-Cola has seen its sales rise as venues like sports stadiums have begun to fill again as COVID-19 restrictions have abated.Getty Images
Increased advertising may have also boosted sales. Coke said it doubled its marketing spending in the second quarter compared to last year.
Case volumes grew 18 percent to a level that was even with 2019. Coke said some markets, like China, Brazil and Nigeria, are already running ahead of 2019 demand, while others, like India, continue to be under pressure due to the pandemic.
In North America, case volumes rose 17 percent as restaurants, movie theaters, stadiums and other venues reopened or dropped capacity restrictions. Coke has historically booked half its revenue from such businesses, which were crushed by the pandemic.Coca-Cola CEO James Quincey said for the second quarter, more people were out and about — and buying more Cokes while doing so — as COVID-19 vaccination rates increased.Getty Images for Coca-Cola
Demand for Powerade and other sports drinks was particularly strong, with case volumes up 35 percent from the same period last year. Coffee sales surged 78 percent as the company’s Costa retail stores reopened in the United Kingdom.see also
The company’s signature Coca-Cola brand also saw double-digit gains, led by Coke Zero Sugar. Quincey said the company’s new recipe for Coke Zero Sugar — which is designed to make it taste more like traditional Coke — is getting positive feedback in the 50 markets where it has already been launched. It will start hitting US store shelves this month.
Coke’s net income surged 48 percent to $2.6 billion. Adjusted for one-time items, the company earned 68 cents per share. Analysts had forecast earnings per share of 56 cents.
The company raised its full-year earnings forecast based on its results. It now expects organic revenue growth of 12 percent to 14 percent in 2021 — up from high single-digit growth — and earnings per share growth of 13 percent to 15 percent.
Coke’s shares were up 2 percent in morning trading.Filed under coca-cola , Coronavirus , corporate earnings , COVID vaccine , 7/21/21
News Source: New York Post
Tags: search coca cola coca cola corporate earnings covid vaccine the company’s the company’s in the second quarter and consumers vaccination rates the same period coca cola the pandemic getty images its revenue the company the company
Stocks making the biggest moves premarket: Comcast, Merck, Tempur Sealy, Yum and others
In this article
Check out the companies making headlines before the bell:
Comcast (CMCSA) – Comcast rose 1.9% in the premarket after reporting adjusted quarterly earnings of 84 cents per share, beating the consensus estimate of 67 cents. The NBCUniversal parent also reported better-than-expected revenue, helped by a rebound in ad sales and a reopening of theme parks.
Merck (MRK) – The drug maker matched estimates with adjusted quarterly profit of $1.31 per share, with revenue beating Street forecasts. Sales of cancer drug Keytruda jumped 23%, in line with expectations. Merck fell 1.8% in premarket trading.
Tempur Sealy (TPX) – The mattress maker earned an adjusted 79 cents per share for its latest quarter, 22 cents above estimates, with revenue topping forecasts as well. Tempur Sealy also raised its full-year outlook, and the stock jumped 4.9% in premarket action.
Yum Brands (YUM) – The parent of KFC, Taco Bell and Pizza Hut came in 20 cents ahead of estimates with adjusted quarterly earnings of 1.16 per share, and revenue also beating analyst projections. Results got a boost from restaurant reopenings as well as continued strong demand in online orders. Yum rallied 2.3% in premarket trading.
Molson Coors (TAP) – Molson Coors added 1.8% in the premarket after its adjusted quarterly earnings of $1.58 per share beat the consensus estimate of $1.34. The beer brewer's revenue was above Wall Street forecasts as well.
Northrup Grumman (NOC) – The defense contractor reported adjusted quarterly earnings of $6.42 per share, beating the $5.84 consensus estimate, with revenue also topping estimates. The company was helped by continued strength in its satellite and missile-making units, and the stock rose 1.1% in premarket trading.
Facebook (FB) – Facebook shares fell 3.7% in premarket trading after the company said revenue growth will slow during the second half of the year as a change in Apple's (AAPL) privacy policies will hurt Facebook's ability to target ads. For the second quarter, Facebook reported earnings of $3.61 per share compared to a consensus estimate of $3.03, with revenue also topping Wall Street forecasts.
Ford (F) – Ford surprised analysts with an adjusted quarterly profit of 13 cents per share. The automaker had been expected to report a second-quarter loss of 3 cents per share, due in large part to a chip shortage crimping production. However, Ford said it expected that situation to improve in the second half, and it raised its full-year outlook. Ford jumped 4% in the premarket.
PayPal (PYPL) – PayPal beat estimates by 3 cents with adjusted quarterly earnings of $1.15 per share, with the payment service's revenue essentially in line with analyst projections. However, shares came under pressure after it gave a lower-than-expected outlook, as former PayPal parent eBay (EBAY) continues its transition to its own payment platform. The stock slid 5.6% in premarket trading.
Qualcomm (QCOM) – Qualcomm reported adjusted quarterly earnings of $1.92 per share, beating the $1.68 consensus estimate, with the chip maker's revenue also exceeding Street forecasts. Qualcomm also gave an upbeat forecast as it expects supply chain disruptions to ease. Qualcomm added 3.2% in the premarket.
Uber Technologies (UBER) – Uber dropped 5.1% in premarket trading after sources told CNBC that Japanese investment giant Softbank is selling a chunk of its stake in Uber to cover losses related to its investment in another ride-hailing company, Didi Global (DIDI). Didi itself is in the news, denying an earlier Wall Street Journal report that it was considering going private. Didi had been up well over 30% in the premarket before that denial, before trimming that still-large gain to 17.5%.
iRobot (IRBT) – iRobot shares plunged 11.5% in premarket trading after it reported a second-quarter loss and cut its full-year outlook. The maker of the Roomba robotic vacuum cleaner said the worldwide chip shortage would continue to hurt its ability to fulfill orders during the second half of the year.