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Coca-Cola Beats Analyst Estimates Despite Falling Revenue in 2Q15


Nov. 20 2020, Updated 5:23 p.m. ET

2Q15 revenue beats estimates

Coca-Cola’s (KO) second quarter revenue came in at $12.2 billion, beating consensus Wall Street analysts’ estimate of $12.1 billion. The company reported results for the second quarter of fiscal 2015 on July 22. The second quarter ended July 3, 2015.

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Revenue down in 2Q15

Coca-Cola’s 2Q15 revenue declined by 3.3% from the comparable quarter of the previous year. After declining for eight straight quarters, the company’s revenue increased in 1Q15 only to decline again in the second quarter. Coca-Cola, which derives over half of its revenue from its international operations, continues to be affected by currency fluctuations. Currency headwinds had a seven percentage point impact on Coca-Cola’s 2Q15 revenue.

Factors that affected 2Q15 revenue

The company’s organic revenue, which excludes the impact of currency fluctuations as well as acquisitions and divestitures, increased by 4% in 2Q15. Growth in 2Q15 organic revenue was driven by higher concentrate shipment and favorable pricing. Coca-Cola’s still beverages performed better than the company’s sparkling or soda beverages. We’ll discuss this in the next part of this series.

With the closure of its deal with Monster Beverage (MNST) in the second quarter, Coca-Cola’s still beverage portfolio has expanded further through the addition of brands like Peace Tea and Hansen’s Juice products.

Coca-Cola constitutes 8.9% of the Consumer Staples Select Sector SPDR Fund (XLP) and 0.9% of the SPDR S&P 500 ETF (SPY).

How peers fared in 2Q15

PepsiCo (PEP) reported a 5.8% decline in its 2Q15 revenue, due to a 10-percentage-point impact of adverse foreign currency movements. Like Coca-Cola, PepsiCo also has significant international exposure with a presence in over 200 countries. Dr Pepper Snapple (DPS), the third-largest soda maker in the United States, reported a 1.5% rise in net sales, driven by higher volumes and favorable product, package, and segment mix.


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