Improvement in volumes

After reporting flat unit case volume in the fourth quarter, Coca-Cola (KO) bounced back with 2% growth in its unit case volume in the first quarter. The company’s volume growth was driven by strength in key markets in Asia and Europe, partially offset by weakness in Argentina, the Middle East, and North America. The first quarter volumes were also adversely impacted by the timing of Easter.

Higher volumes and increased pricing led to a 5.2% increase in Coca-Cola’s reported revenue and a 6.0% increase in organic revenue in the first quarter.

What Drove Coca-Cola’s Volume Growth in the First Quarter?

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Volumes by category

Coca-Cola’s sparkling soft drink volumes increased 1.0% in the first quarter due to the strong performance of the Coca-Cola brand, particularly the original Coca-Cola line and double-digit growth in Coca-Cola Zero Sugar volumes. This was the sixth consecutive quarter in which Coca-Cola Zero Sugar’s global volumes increased by double digits.

Coca-Cola’s juice, dairy, and plant-based beverage volumes were flat on a year-over-year basis as higher volumes of the Del Valle brand in Mexico and Maaza in India were offset by lower volumes of the Rani brand in the Middle East. Coca-Cola’s water, enhanced water, and sports drink volumes grew by an impressive 6%. The category benefitted from higher volumes of smaller packages.

Tea and coffee unit case volumes were flat in the first quarter as the favorable impact of innovation and new product launches was offset by lower volumes in the Doadan tea business in Turkey.

Coca-Cola’s unit case volume in the North America region declined 1% in the first quarter. The company cited higher pricing, package initiatives, and the timing of Easter as the reasons for the lower volumes in this important region.

Rival PepsiCo (PEP) also faced disappointment in the North America region. PepsiCo’s Beverages North America division experienced a 2% decline in its volume in the first quarter due to a 4% fall in carbonated soft drink volumes. The segment’s non-carbonated beverage volumes grew 1% in the first quarter.

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.