Strong European sales offset global volume pressures
Coca-Cola delivered better-than-expected second-quarter results, posting adjusted earnings per share of 87 cents versus Wall Street’s 83-cent estimate. Revenue reached $12.62 billion, just above forecasts of $12.54 billion, driven by organic growth of 5%. Net income rose to $3.81 billion, or 88 cents per share, from $2.41 billion a year ago.
While revenue grew, global unit case volume dipped 1%, with nearly all regions showing lower demand. Only the Europe, Middle East, and Africa segment posted positive volume growth at 3%, helping balance out softness in North America, Latin America, and Asia-Pacific. Shares of Coca-Cola slipped less than 1% in premarket trading.
Regional trends show uneven consumer demand
In North America, volume fell 1% as demand for the flagship Coca-Cola soda weakened, although trends improved from the previous quarter. CEO James Quincey noted resilient overall consumer spending but acknowledged pressure on lower-income households, prompting targeted affordability strategies and marketing efforts.
Latin America saw a 2% drop in volume, impacted partly by a temporary boycott among Hispanic consumers in the U.S. fueled by false social media rumors. Coke’s Asia-Pacific region reported a 3% volume decrease. Conversely, the EMEA region emerged as a bright spot, with improved performance compared to the first quarter.
Product segments under pressure
Across product lines, Coca-Cola’s sparkling soft drinks category declined 1%, while juice, plant-based beverages, and dairy products dropped 4%. The water, sports drinks, coffee, and tea division posted flat results, with coffee gains offsetting losses in other beverages.
Despite mixed product performance, Coke aims to boost momentum through new launches, including a cane sugar-sweetened version of its cola, set to debut in the U.S. this fall. The brand hopes this innovation will resonate with health-conscious and nostalgic consumers.
Full-year guidance adjusted at the high end
Looking ahead, Coca-Cola narrowed its full-year outlook, guiding for 3% comparable earnings per share growth — the upper limit of its prior forecast. It maintained its projection of 5% to 6% growth in organic revenue for 2025, signaling confidence in its pricing power and global strategy despite geopolitical and economic challenges.
