Coca-Cola Co. rose after reporting better-than-expected revenue growth for the fourth quarter, citing rising demand overseas and higher demand for its low-sugar offerings in the U.S.

The Atlanta-based beverage giant said unit case volume gained three per cent. Organic revenue, which strips out some items like currency effects, increased seven per cent — above analysts’ average estimate of 4.9 per cent growth, according to Bloomberg Consensus. Quarterly earnings matched the average of analysts’ predictions.

Key Insights

• Diversifying its product lineup beyond sugary soda is paying off. Coca-Cola Zero Sugar had another year of double digit volume growth, the company said. Abroad, one of its juice and smoothie brand, Innocent, will expand further in 2020. The recently acquired dairy business, Fairlife, also has contributed to sales growth.

• Coca-Cola sees a gain of about five per cent in organic revenue in 2020. The company sees earnings of about US$2.25 a share for the year, seven per cent higher than the 2019 result.

• Executives said in a call with analysts that it is too early to tell what the short-term impact would be from the coronavirus outbreak in China that has killed more than 100 and disrupted daily life for millions. For now, the company is prioritizing employee safety and supporting efforts to contain the virus. Coke officials said that the SARS outbreak of almost two decades ago ended up not being particularly noticeable from a business standpoint.

Market Reaction

Coke shares rose as much as 2.9 per cent, the most in three months, on Thursday.