Coke's Profit and Revenue Fall--Update
October 26 2016 - 9:41AM
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
have 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.
That followed flat global volumes in the second quarter -- the
first quarter that volume didn't grow at the beverage giant since
1999.
In a further sign of stabilizing results, Coke reiterated its
2016 guidance, including 3% organic revenue growth and a 4% to 7%
decline in comparable earnings per share. The company adjusted its
revenue guidance down from 4% to 5% growth in July.
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, 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.
--Mike Esterl contributed to this article.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
October 26, 2016 09:26 ET (13:26 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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