Looking back on beverages, alcohol, and tobacco stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Coca-Cola (NYSE: KO) and its peers.
These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.
The 15 beverages, alcohol, and tobacco stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1% below.
Thankfully, share prices of the companies have been resilient as they are up 7% on average since the latest earnings results.
Coca-Cola (NYSE: KO)
A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.
Coca-Cola reported revenues of $12.62 billion, up 2.1% year on year. This print exceeded analysts’ expectations by 0.5%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Unsurprisingly, the stock is down 5.7% since reporting and currently trades at $66.12.
Is now the time to buy Coca-Cola? Access our full analysis of the earnings results here, it’s free.
Best Q2: Celsius (NASDAQ: CELH)
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Celsius reported revenues of $739.3 million, up 83.9% year on year, outperforming analysts’ expectations by 14%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
Celsius achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 37.7% since reporting. It currently trades at $59.02.
Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Tilray (NASDAQ: TLRY)
Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.
Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin and EPS estimates.
Tilray delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 133% since the results and currently trades at $1.62.
Read our full analysis of Tilray’s results here.
Vita Coco (NASDAQ: COCO)
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
Vita Coco reported revenues of $168.8 million, up 17.1% year on year. This print surpassed analysts’ expectations by 4.8%. Aside from that, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
Vita Coco had the weakest full-year guidance update among its peers. The stock is up 14.7% since reporting and currently trades at $42.17.
Read our full, actionable report on Vita Coco here, it’s free.
Boston Beer (NYSE: SAM)
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Boston Beer reported revenues of $587.9 million, up 1.5% year on year. This number was in line with analysts’ expectations. It was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 10.6% since reporting and currently trades at $223.22.
Read our full, actionable report on Boston Beer here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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