Coke Profit and Revenue Fall Less Than Expected
October 26 2016 - 8:07AM
Dow Jones News
By Anne Steele
Coca-Cola Co. said profit and revenue fell less than expected in
the latest quarter as developed markets buoyed the top line despite
softness abroad.
Overseas weakness and the stronger U.S. dollar have dragged
results lately for the company, which generates about half its
sales abroad but translates results into dollars. Higher prices and
smaller packaging in the U.S. that costs consumers more per ounce
has helped Coke offset those declines.
During the September period, Coke reported that its beverage
volumes grew 1% world-wide and in Coke's key North American
market.
On Wednesday, Chief Executive Muhtar Kent pointed to solid
revenue results in developed markets with the U.S., Japan and
Western Europe delivering "standout performance."
Noncarbonated drinks, which include tea, coffee and juice
drinks, grew 3%, mostly owing to water and sports drinks.
Soda volumes were even in the quarter globally--as growth in
three of the four geographic segments was offset by a decline in
Latin America--and in North America, as growth in Sprite, Fanta and
energy drinks was offset primarily by a decline in Diet Coke.
In all for the quarter, Coke posted a profit of $1.05 billion,
or 24 cents a share, down from $1.45 billion, or 33 cents a share,
a year earlier. Excluding certain items, per-share earnings were 49
cents, topping the 48 cents analysts polled by Thomson Reuters had
forecast.
Revenue deflated 6.9% to $10.63 billion, but stayed above
analysts' prediction for $10.51 billion. The company said foreign
exchange shaved 2% off its revenue in the quarter.
Shares, up 1% so far this year, added 0.6% another premarket to
$42.81.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
October 26, 2016 07:52 ET (11:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Coca Cola (NYSE:KO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Coca Cola (NYSE:KO)
Historical Stock Chart
From Apr 2023 to Apr 2024