Coca-Cola has lifted its full-year forecasts after stronger demand for its core fizzy drinks, zero-sugar products and sports beverages helped sales beat expectations.

The drinks giant posted comparable second-quarter revenue of £10.06bn, up around six per cent and ahead of analyst forecasts of £9.90bn.

Reported net revenue increased seven per cent to £10.08bn, while global unit case volumes rose five per cent. Pricing and product mix added a further two per cent.

Chief executive Henrique Braun said Coca-Cola had delivered another strong quarter by responding to changing consumer and customer needs.

Zero Sugar and Powerade drive growth

Coca-Cola Zero Sugar remained one of the group’s fastest-growing products, with volumes surging 16 per cent.

Diet Coke and Coca-Cola Light volumes increased seven per cent, while the wider sparkling soft drinks portfolio grew four per cent.

Demand was also supported by Coca-Cola’s sponsorship of the 2026 FIFA World Cup. Trademark Coca-Cola volumes climbed five per cent, while Powerade advanced eight per cent as the company increased marketing and retail activity around the tournament.

Its water, sports drinks, coffee and tea division recorded six per cent volume growth. Water and tea were both up six per cent, while sports drinks increased five per cent.

Coffee was the main weakness, with volumes down two per cent following softer trading in Asia-Pacific.

Juice, dairy and plant-based beverage volumes rose two per cent, helped by growth in North America and Asia-Pacific.

North America pricing supports sales

North American volumes increased three per cent, led by Coca-Cola and the company’s juice, dairy and plant-based portfolio.

Price and product mix rose four per cent as the business continued to balance higher costs with efforts to keep products affordable through different pack sizes and price points.

Asia-Pacific delivered the strongest volume growth, up eight per cent, although regional pricing and product mix fell as Coca-Cola invested in affordability and generated more sales from lower-priced markets.

The company said shortages of aluminium cans had also affected availability in India.

Volumes across Europe, the Middle East and Africa rose four per cent, supported by sparkling drinks, water and sports beverages.

Material costs increase

Coca-Cola warned that aluminium and PET plastic costs had risen more sharply than expected amid energy disruption and higher fuel prices.

The group said it had secured some materials at earlier prices and was working with bottling partners to manage the impact, although further inflation remained possible.

Despite the pressure, Coca-Cola’s comparable operating margin increased from 34.7 per cent to 35.6 per cent.

Reported operating income rose nine per cent, while earnings per share climbed 16 per cent to £0.78. Comparable earnings reached £0.73, ahead of expectations.

Full-year guidance upgraded

Coca-Cola now expects organic revenue to rise by approximately five per cent in 2026, compared with its previous forecast of between four per cent and five per cent.

Comparable earnings per share are forecast to grow between nine per cent and 10 per cent, up from an earlier target of eight per cent to nine per cent.

The company expects to generate free cash flow of around £9.33bn, comprising approximately £10.99bn in operating cash flow and £1.66bn in capital expenditure.

Coca-Cola shares climbed as much as seven per cent following the update, reaching a record £67.83.

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