Coca-Cola posts robust Q1 results driven by biz in China

The Coca-Cola Company reported first-quarter results that exceeded market expectations, with revenue and profit rising on steady global demand and stronger momentum in emerging markets, including China.

Net revenue climbed 12 percent to $12.47 billion, beating analysts' estimates of $12.23 billion. Organic revenue grew 10 percent, while net income increased 19 percent to $3.97 billion.

Global unit case volume expanded 3 percent in the quarter, driven by growth in China, the United States and India. The Asia-Pacific region posted a 5 percent increase in volume, underscoring its role as a key growth engine for the beverage giant.

By category, sparkling soft drinks grew 2 percent globally. Coca-Cola grew 2 percent, driven by growth in the Asia-Pacific and North America. Coca-Cola Zero Sugar grew 13 percent. Sparkling flavors grew 3 percent, while water, sports drinks, coffee and tea grew 5 percent.

CEO Henrique Braun said during the results announcement that the Asia-Pacific is one region that the company is definitely developing for the future.

Braun said volume growth was recorded across all operating units in the region, alongside gains in market share. In China, he said the company's focus on categories with a competitive advantage is beginning to deliver results.

"We're not going to play in every category," Braun said. "We are focusing on quality, scale and segments where we believe we have the right to win — and that is now starting to pay back."

Coca-Cola China continues to lead on sparkling in the domestic market, said the company.

The company has expanded its product portfolio to capture evolving consumer preferences. New offerings in the quarter included Coca-Cola's new prebiotic soda, Sprite + Tea, and functional beverages such as Minute Maid Vitamin C Citrus, targeting consumption scenarios ranging from meals to sports.

The company has stepped up efforts to connect with consumers through culturally tailored marketing and product innovation. During the Chinese New Year holiday, the beverage giant launched an AI-enabled campaign inspired by traditional Chinese art, allowing consumers to create personalized digital portraits via connected packaging.

The company also introduced a limited-edition "Year of the Horse" fireworks can packaging, incorporating zodiac imagery and embroidery-inspired design elements.

To better serve the local market, Coca-Cola China continues to collaborate with its bottling partners and accelerate supply chain expansion. Over the past three years, the Coca-Cola China system has invested in upgrading five production facilities, encompassing facility construction, capacity expansion and smart upgrades, supporting sustainable business growth.

In April, Coca-Cola's Jinwan New Plant in Zhuhai, Guangdong province, was officially inaugurated. As a key production and sales base in southern China, the facility represents a total investment of about 835 million yuan ($122.75 million), with 15 planned production lines.

wangzhuoqiong@chinadaily.com.cn