Coca-Cola Company (NYSE:KO) traded higher in early action on Tuesday after beating organic sales estimates with its Q3 earnings report.
“While the overall environment has continued to be challenging, we’ve stayed flexible — adapting plans where needed and investing for growth,” stated Coca-Cola (NYSE:KO) CEO James Quincey.
Revenue was up 5.0% year-over-year to $12.5 billion for the quarter that ended on September 26. The revenue performance included 6% growth in price/mix, while concentrate sales were even. Concentrate sales were 1 point behind unit case volume due to the timing of concentrate shipments.
Organic revenue rose 6% vs. the +4.8% consensus estimate. The organic revenue growth was led by gains in the Europe, Middle East & Africa (+7%), Asia Pacific (+7%), and Bottling Investments (+7%) segments.
Unit case volume grew 1% during the quarter, primarily driven by growth in Central Asia, North Africa, Brazil, and the United Kingdom. Sparkling soft drinks were even. Trademark Coca-Cola grew 1%, driven by growth in Europe/Middle East/Africa as well as Asia Pacific. Coca-Cola Zero Sugar grew 14%, driven by growth across all geographic operating segments. Diet Coke/Coca-Cola Light grew 2%, primarily driven by growth in North America and Asia Pacific.
Price/mix grew 6% for Coca-Cola (KO) in Q3, primarily driven by pricing actions in the marketplace and favorable mix
Comparable operating margin expansion during the quarter was 31.9% vs. 30.7% a year ago and 31.5% consensus. The comparable operating margin improvement was driven by organic revenue growth and effective cost management, partially offset by an increase in marketing investments and currency headwinds.
Comparable EPS was up 6% year-over-year to $0.82 vs. $0.78 consensus and included the impact of a 6-point currency headwind.
Looking ahead, Coca-Cola (KO) sees full-year organic sales growth of about 5% to 6% and EPS growth of about 3%.
Shares of Coca-Cola (KO) moved 2.4% higher in premarket action, while PepsiCo (PEP) and Keurig Dr Pepper (KDP) also showed modest gains.