Coca-Cola raises full-year forecast after profits beat estimates

In this July 20, 2019, photo, a Coca-Cola billboard is seen above left field at SunTrust Park during a baseball game between the Washington Nationals and Atlanta Braves in Atlanta. (AP Photo/John Bazemore, File)

New York, United States — Coca-Cola on Tuesday raised some of its full-year financial forecasts after reporting better-than-expected profit, pointing to a surge in premium products that helped offset weakness in some markets.

The soft drink giant reported second-quarter profit of $2.4 billion, down 5 percent from the same period last year. Revenue rose 3 percent to $12.4 billion.

While volumes were up just two percent, results were positively impacted by a nine percent increase in ‘price/mix’, reflecting the increase in retail prices as well as the shift in Coca-Cola’s product offering, which is now tilted more towards higher-priced products.

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In North America, “price/mix” rose 11 percent, with half of the price increase coming from products such as Coca-Cola’s juice division or its seltzer brand Topo Chico, company officials said.

While lower-income consumers may have demanded less, enough was spent on “more premium categories or more premium price points and experiences” to offset that, said CEO James Quincey.

“It all adds up to some resilience for the average consumer,” he said on a conference call with analysts.

Executives reported generally solid performance in North America, while European operations suffered from lackluster outdoor activity, which was attributed to poor weather.

However, Quincey said Coca-Cola plans to run aggressive marketing campaigns at major music and sporting events, including the Olympic Games.

Shares of Coca-Cola rose 0.7 percent in afternoon trading.