Coca-Cola reports Q2 numbers ahead of long-term growth targets
The Coca-Cola Co., Atlanta, reports that its second quarter and year-to-date 2011 operating results are meeting or exceeding the company’s long-term growth targets and gaining volume and value share in total nonalcohol ready-to-drink (NARTD) beverages.
Reported worldwide volume grew 6 percent in both the quarter and year-to-date. Excluding new cross-licensed brands in North America, primarily Dr Pepper brands, worldwide volume grew 5 percent in the quarter and year-to-date.
Coca-Cola reported the North America Group’s volume grew 4 percent in the quarter and 5 percent year-to-date. Excluding new cross-licensed brands, North America organic volume was flat in the quarter and up 1 percent year-to-date, with continued volume and value share gains across total NARTD beverages.
Sparkling volume was up 6 percent in both the quarter and year-to-date. Excluding new cross-licensed brands, organic volume for sparkling beverages declined 1 percent in the quarter and year-to-date. Coca-Cola Zero delivered double-digit volume growth for the 21st consecutive quarter, up 12 percent, driven by strong marketing and continuing growth in foodservice, the company said. Fanta grew for the fourth consecutive quarter, up 7 percent, with strong retail activation.
North America still beverage volume grew 1 percent in the quarter and 4 percent year-to-date, led by Powerade growth of 9 percent and Gold Peak tea growth of 38 percent in the quarter. Overall the juice category was soft in the quarter as the company led industry pricing to offset commodity costs while still growing the Simply brand and expanding the availability of single-serve packaging, the company said. Both Vitaminwater Zero and Smartwater continued to grow double digits in the quarter.
Reported North America net revenue for the quarter increased 141 percent, primarily reflecting the acquisition of CCE’s North American operations, the company said. Concentrate sales growth was 3 percent, including new cross-licensed brands.
Second quarter reported operating income grew 46 percent for North America. Comparable currency neutral operating income grew 62 percent in the quarter, primarily reflecting the acquisition of CCE’s North American operations and growth in the underlying business, partially offset by higher commodity costs and the timing of marketing expenses as it conformed the newly acquired North American bottling business to its accounting policies, the company said.
“We are pleased with our second quarter performance results. We completed the second quarter of 2011, and the sixth quarter of our 2020 Vision, by delivering results ahead of our long-term growth targets,” said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co., in a statement. “Importantly, we are delivering these strong results at a time when global macroeconomic conditions are at best mixed. This serves to underscore how, together with our global bottling partners, we are decisively investing in the future and executing our 2020 Vision from a position of real strength.”