(Reuters) – Coca-Cola Co (KO.N) Wall Street beat estimates for Friday's quarterly income as customers took smaller cans for their sodas, including Coca-Cola Zero Sugar, encouraging the beverage manufacturer to give a projection for 2019.
PHOTO FILE: The Coca-Cola logo is featured in a Paris, France, March 21, 2019 event. REUTERS / Benoit Tessier / File Photo GLOBAL BUSINESS
The increasing demand for forced sugar drinks has contributed to the world's two largest beverage manufacturers, Coca-Cola and PepsiCo Inc (PEP.O), low sugar drinks spread out, and diversify into coffee waters, tea and bottle to boost sales.
New products such as Coca-Cola Plus Coffee are being implemented by Coca-Cola, a combination of its trademark soda with coffee in more than 20 markets, as well as drinks in small but high margins which are attractive to consumers. turning more consciously on health.
The beverage manufacturer is launching Coca-Cola Energy, its first Coke branded energy drink, in the US, and expanded its coffee business with the purchase of a multi-billion dollar Costa Cafe based in Britain last year.
The amount of sparkling soft drinks rose 2% in the quarter, driven by double-digit percentage growth in Coca-Cola Zero Sugar and Sprite in North America.
Smaller package drinks also showed strong growth, led to double digit growth in 7.5 ounce miniatures.
Organic income, which excludes the impact of currency fluctuations, acquisitions and divesting, focused 5% during the quarter, above the estimated average of 4.3%, according to five analyzes carried out by Refinitiv polled.
Atlanta-based company shares rose by 2% before the open clock, adding to the 14% they received this year.
“Coca-Cola's top line was superior to his favorite people,” said Wells Fargo, analyst Bonnie Herzog.
Coca-Cola also said that it is now expected that total year organic income growth will be at least 5%, from the previous forecast of 5% growth.
Overall, revenue rose by 8.3% to $ 9.51 billion in the third quarter ended September 27, hitting the analyst media estimate of $ 9.43 billion, according to IBES data from Refinitiv.
Without counting items, Coca-Cola earned 56 cents per share, in line with estimates.
The beverage manufacturer kept its full year profit forecast even as it reduced its forecast of capital expenditure for the year to around $ 2.2 billion from its predecessor target of around $ 2.4 billion.
Earlier this month, PepsiCo Inc (PEP.OThey also reported better than expected profit and quarterly sales, and used an advertising blitz and demand for low calorie drinks in North America.
Reporting at Soundarya J in Europe Europe; Edited by Saumyadeb Chakrabarty
. t) Food and Beverages (TRBC) (t) Beverages (Heritage) (t) Major News (t) Europe (t) Food Processing (Heritage) (t) United Kingdom (t) Non (t) Goods and Services Consumer cycles (TRBC) (t) (United States) (TRBC) t