Coca-Cola third-quarter earnings per share top estimates amid steady demand

Investing.com - Coca-Cola has posted third-quarter adjusted profit and revenue which were slightly ahead of Wall Street expectations, despite the beverage giant describing the overall operating environment as "challenging."

The group has been grappling with slipping volumes in major markets like the United States and Latin America in recent quarters, reflecting a move by many price-conscious shoppers to turn away from more expensive sodas.

A recent push for healthier options under U.S. Health Secretary Robert F. Kennedy Jr. has also led Coca-Cola to recently pledge to introduce a Coke product using more natural cane sugar in the U.S., rather than alternative sweeteners like corn syrup. The change is anticipated to push up costs for Coca-Cola, experts have said.

Still, demand has remained broadly steady in the U.S. and some foreign markets, while price hikes for products like Topo Chico sparkling water and Fairlife milk have helped to underpin returns. Unit case volumes ticked up by 1%, outpacing forecasts, as a decline in nutrition, juice, dairy and plant-based drink volumes was offset by an uptick in those of water, sports, coffee and tea beverages. Volumes of sparkling soft drinks were even.

Net revenues grew by 5% to $12.45 billion, topping estimates of $12.48 billion, according to Bloomberg consensus forecasts. Comparable earnings per share stood at $0.82 for the three-month period ended on September 26, above expectations of $0.78.

Coca-Cola reiterated its previously-stated annual outlook for comparable per-share income expansion of about 3%, as well as adjusted organic revenue growth of 5% to 6%.

The figures come after rival PepsiCo also reported better-than-anticipated results earlier in October which reflected resilience in overseas markets and a call for healthier options in the U.S.

Shares of the beverage group were higher by more than 2% in premarket U.S. trading on Tuesday.