Shares of Coca-Cola (KO -0.33%) rose to record highs on Tuesday after the beverage titan said the World Cup boosted its sales and profits.
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A well-planned advertising strategy fueled Coca-Cola's gains
Coca-Cola's net revenue rose 7% year over year to $13.4 billion in the second quarter.
The soda king credited its global marketing campaign for the World Cup with helping to drive volumes of its trademark Coca-Cola and Powerade sports drink up by 5% and 8%, respectively. Coca-Cola Zero Sugar was a particularly strong performer, with volumes up 16%.
"We had, during the World Cup, really a great opportunity for us to shine our brands," CEO Henrique Braun said during an interview with CNBC. "During the hydration breaks, Powerade was there."
NYSE: KO
Key Data Points
Coca-Cola's operating income increased 9% to $4.7 billion, as its operating margin improved to 34.9% from 34.1% in the year-ago quarter.
All told, the beverage leader's adjusted earnings jumped 11% to $0.97 per share. That exceeded Wall Street's estimates, which had called for per-share profits of $0.93.
Raised guidance
These solid results prompted Coca-Cola to lift its full-year outlook. Management now projects organic revenue growth of roughly 5% and adjusted earnings-per-share growth of 9% to 10% in 2026.
During a conference call with analysts, Braun acknowledged that consumers are facing challenges related to ongoing inflation. Yet many still choose to purchase Coca-Cola products, which have become affordable luxuries in the current economic environment.
