'Best-ever quarter volumetrically': Coca-Cola on growth in India in Q2

Global soft drinks major Coca-Cola Company on Tuesday said its India business recorded the best-ever volumetrically growth in the second quarter.

It reported unit case volume growth in the June quarter, helped by its sparkling soft drinks portfolio and fruit drink brand Maaza.

"In India, we delivered our best-ever quarter volumetrically that's 1 billion incremental transactions in the quarter led by affordable single serve packs. We gained share in sparkling soft drinks and juices and our system is continuing to invest in the marketplace availability and execution to capture growth," said Coca-Cola Company Chairman and CEO James Quincey during the company's earnings call on Tuesday.

In the second quarter, Coca-Cola Company's sparkling soft drinks grew 8 per cent, which was "primarily led by India, Mexico and Brazil", said the Atlanta-headquartered firm in its global earnings released on Tuesday.

"Growth in developed markets was led by Mexico, Western Europe and the United States, while growth in developing and emerging markets was led by India and Brazil," it said.

Nutrition, juice, dairy and plant-based beverages grew 6 per cent led by Maaza in India, Del Valle in Latin America and fairlife in the US.

In the Asia Pacific Market, which includes India, Coca-Cola's unit case volume grew 11 per cent.

This was "driven by strong growth in India and the Philippines, partially offset by pressure in China due to reduced consumer mobility resulting from a resurgence in COVID-19 cases", said Coca-Cola.

During the three months ended July 1, 2022, Coca-Cola Company's net operating revenue was USD 1.56 billion, up 4.19 per cent. It was USD 1.50 billion in the corresponding period last year.

Unit case volume means the number of unit cases of the company's beverages directly or indirectly sold by it and its bottling partners to customers.

India is the fifth-largest market for Coca-Cola globally.

Overall, Coca-Cola Company's net revenues grew 11.80 per cent to USD 11.32 billion and organic revenues (non-GAAP) grew 16 per cent. Its net revenue was USD 10.12 billion in the June quarter of last year.

James Quincey said: "Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we have taken to execute for growth in the face of challenges in the operating and macroeconomic environment".