Coca-Cola Co. (NYSE:KO) posted second quarter earnings that topped analysts’ estimates, supported by growing demand for healthier versions of its beverages.
The company has been reducing the sugar content from its beverages and diversifying beyond soft drinks as consumers switch to healthier options and as more countries consider special taxes on sugar to combat obesity.
The beverage maker plans to introduce Coke Zero Sugar in the US in August.
Global volumes of low and no-calorie soda drinks rose in the mid-single digits in the second quarter.
Revenue fell 16% to US $9.70bn, reflecting the refranchising of bottling operations in North America, but it was ahead of market forecasts of US$9.65bn.
Coca-Cola incurred a US$653mln charge related to the refranchising as part of plans to sell most of its low-margin bottling business to cut costs.
Net income attributable to Coca-Cola's shareholders fell to US$1.37bn, or 32 US cents per share, from US$3.45bn, or 79 US cents per share, a year earlier.
Excluding items, the group earned 59 US cents per share, exceeding forecast of 57 US cents.
Coca-Cola also raised its 2017 guidance, citing lower impact of currency exchange rates. It now expects profits to be flat or down 2%, compared to a previous estimate of a 1-3% drop.
Shares dipped 0.31%, or 14 US cents, to US$45.10 per share in US pre-market trading.