Coca-Cola’s Q2 results boosted by Zero Sugar and Diet Coke sales

Coca-Cola’s Q2 results beat the expectations of analysts thanks in part to the strong performance of its Coca-Cola Zero Sugar and Diet Coke brands, leading to a 5% rise in organic revenue in the quarter.

Despite the growth in sales, net revenue in the quarter actually fell 8% to $8.93 billion, though according to Reuters, analysts had predicted that Coca-Cola would register revenues of $8.54 billion, so the company surpassed this estimate.

Coca-Cola attributed the revenue fall to the re-franchising of its bottling operations, which caused a 15% drop in overall net revenue.

However, the company’s revenues rose in all of its operating regions, as demand increased for drinks such as Coca-Cola Zero Sugar, the new Diet Coke, Fuze Tea and Adez.

Revenue in North America, Coca-Cola’s largest market, rose 7% to $3.1 billion, thanks largely to the double-digit growth of Coca-Cola Zero Sugar, while sales of water, enhanced water and sports drinks grew 5% , with Powerade a particularly strong performer.

European revenues rose 7% to $2.2 billion, while the company also registered a revenue rise of 8% in Latin America and a 1% rise in Asia Pacific, which recorded revenues of 1 billion and 1.5 billion respectively.

The company’s overall operating profit for the quarter rose 34% to 2.7 billion thanks to the growth in sales.

James Quincey, President and CEO of The Coca-Cola Company said: “We’re encouraged with our performance year-to-date as we continue our evolution as a consumer-centric, total beverage company.

“We have the right strategies in place and remain focused on achieving our full year guidance.”