Zero-sugar sodas drive Coca-Cola revenue beat

(Reuters) – Coca-Cola Co (N:) reported better-than-expected quarterly revenue on Friday, boosted by strong demand for its zero-sugar sodas and Coca-Cola Plus Coffee, a blend of its traditional soda and coffee.

Faltering demand for sugary drinks has forced the world’s two largest beverage makers, Coca-Cola and PepsiCo Inc (O:), to roll out low-sugar drinks, while diversifying their offerings into coffee, tea and bottled waters to boost sales.

Coca-Cola has been rolling out new offerings such as Coca-Cola Plus Coffee as well as drinks in small packs that command higher prices and are more appealing to consumers. It also expanded its coffee business with the multi-billion dollar purchase of Britain-based Costa Coffee last year.

Volume in sparkling soft drinks rose 2% in the quarter, driven by double-digit percentage growth in Coca-Cola Zero Sugar as well as Coke and Sprite in North America.

Organic revenue, climbed 5% during the quarter, above the average analyst estimate of 4.3%, according to five analysts polled by Refinitiv.

Coca-Cola also said it now expects full-year organic revenue growth excluding currency fluctuations, acquisitions and divestitures to be at least 5%, from its previous forecast of 5% growth.

The company’s shares climbed 2% before the bell, adding to the 14% they have gained this year.

Net operating revenue rose 8.3% to $9.51 billion in the third quarter ended Sept. 27, beating the average analyst estimate of $9.43 billion, according to IBES data from Refinitiv.

Excluding items, Coca-Cola earned 56 cents per share, inline with estimates.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.