Coca-Cola posted higher-than-expected revenue and profit for the second quarter, supported by price increases and strong demand for its zero-calorie drinks.
Comparable revenue rose 2.5% to $12.62 billion, above estimates of $12.54 billion. The company earned 87 cents per share, excluding items, topping expectations of 83 cents.
Volume dropped 1% for the quarter ended June 27, after rising 2% in each of the previous two quarters. Declines in Mexico, India, and for the Coca-Cola brand in the U.S. contributed to the fall.
CEO James Quincey said the drop in North America was linked to pressure on lower-income consumers and a recent boycott in the U.S. and Mexico. That boycott, driven by a viral video showing layoffs of Latino workers and reports to immigration authorities, has largely ended, he said.
Coca-Cola Zero Sugar volume rose 14%, with growth across all regions. Prices increased 6% overall in the second quarter, especially in inflation-affected markets.
The company said cost pressures due to global trade dynamics remain manageable.
Coca-Cola plans to launch a cane sugar version of Coke in the U.S. later this year. It already offers cane sugar Coke in countries such as Mexico, and some U.S. stores sell imported glass bottles labelled “Mexican” Coke. The move comes after President Donald Trump said the company agreed to use real cane sugar following Health Secretary Robert F. Kennedy Jr.’s campaign to make food and beverages healthier.
The shift to cane sugar could increase production costs and impact supply chains. Rival PepsiCo has also said it would consider using natural ingredients based on consumer demand.
Coca-Cola expects full-year earnings per share growth near the top end of its 2% to 3% target, helped by a weaker dollar. The company’s shares were down 1% in early trading but are up 12.5% so far this year.
