(Reuters) -Coca-Cola's third-quarter results exceeded Wall Street's expectations on Tuesday, helped by resilient demand for its trademark sodas and zero-sugar beverages.
Shares of the company rose 2.5% in premarket trading as it also maintained annual sales and profit targets even as CEO James Quincey flagged a challenging overall environment.
Coca-Cola has invested in zero-sugar beverages and energy drink in the U.S. and international markets as it tries to woo consumers who have been tempering non-essential
spending due to economic uncertainties and inflation.
The world's largest beverage company has also benefited from price increases particularly for products such as Fairlife milk and Topo Chico sparkling water brand.
It reported quarterly revenue of $12.46 billion, topping estimates of $12.39 billion, according to data compiled by LSEG.
In North America, growth in categories such as ready-to-drink tea, water and energy drinks helped offset another weak quarter for its trademark Coca-Cola this year.
Coca-Cola is poised to launch its cane sugar trademark soda in the U.S. this fall season amid the Make America Healthy Again movement under President Donald Trump's administration, even as analysts raised some concern over higher input costs.
The company also plans to offer mini 7.5-ounce single-serve cans, priced at less than $2 in U.S. convenience stores targeting budget-conscious consumers, to revive volume sales.
Rival PepsiCo also topped quarterly estimates earlier this month, helped by growth in international markets and demand for healthier drinks in the U.S.
PepsiCo has also doubled down on offering smaller pack sizes for its salty snacks, focusing on making the products more affordable.
In the third quarter, Coca-Cola reported volume growth of 1%, and while prices grew 6%. In the previous quarter, volumes had fallen 1%, while prices rose 6%.
Coca-Cola Zero Sugar volumes grew 14% for the second straight quarter, while demand for diet coke and Coca-Cola Light in North America helped volumes for those products grow about 2%.
Excluding items, the company earned 82 cents per share, beating expectations of 78 cents.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Arun Koyyur)
