Coca-Cola reported a big jump in quarterly profits Wednesday, scoring higher sales in North America and other markets where economic activity sprung back to life following coronavirus restrictions.
The soda giant’s second quarter results benefited from the striking contrast with the year-ago period, which was buffeted by the sudden halt to sales from movie theaters, live sporting events and other away-from-home venues.
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“Our results in the second quarter show how our business is rebounding faster than the overall economic recovery,” said Coca-Cola Chief Executive James Quincey, who noted the company raised its full-year forecasts despite the “asynchronous” nature of the recovery across markets.
Revenues rose across all regions, with Coca-Cola pointing to the “ongoing recovery in many markets, partially offset by the impact of a resurgence of the coronavirus in several markets.”
In North America, sales rose 28 percent, as the company continued to enjoy strong at-home sales, in addition to gains from the recovery of their fountain business.
Other strong markets included China, Brazil and Nigeria.
The company’s profit in the quarter jumped 48 percent to $2.6 billion off of a 42 percent surge in revenues to $10.1 billion.
Coca-Cola now expects “organic” annual revenue growth, which excludes currency fluctuations and divestitures, of 12 to 14 percent, after previously projecting growth in the “high” single digits.
Shares rose 2.1 percent to $57.01 in pre-market trading.