ATLANTA - Coca-Cola Co. (KO) on Wednesday reported disappointing sales for the second quarter and cut its outlook as global volume remained unchanged from a year ago.
The world's biggest soda maker says it sold more non-carbonated drinks globally, but less soda. The maker of Fanta, Sprite and Powerade is working to adjust to changing drinking habits and an ongoing move away from big soda brands in key markets including the U.S. The moves include offering smaller cans and glass bottles that are positioned as premium offerings, and seeking growth in non-carbonated drinks.
Rival PepsiCo Inc. (PEP) has also said that it is concentrating on beverage categories that are growing, rather than focusing too much on soda.
In North America, Coca-Cola said soda volume declined 1 percent for the period while non-carbonated drinks rose 3 percent.
The company now expects organic sales for the year to climb 3 percent, compared with its previous forecast for growth of 4 to 5 percent.
For the three months ended July 1, Coca-Cola earned $3.45 billion, or 79 cents per share. Earnings, adjusted for non-recurring gains, were 60 cents per share. That was more than the 58 cents per share analysts expected, according to Zacks Investment Research.
Total revenue declined 5 percent to $11.54 billion, missing the $11.69 billion analysts expected. After stripping out the impact of currency fluctuations and acquisitions and divestitures, the company said pricing helped lift revenue 3 percent.
Coke shares fell almost 2 percent to $44.05 in premarket trading.
It shares have climbed 4.5 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 6 percent. The stock has climbed 11 percent in the last 12 months.