Soft drink maker Coca-Cola Co. (KO: Quote) on Tuesday said its profit in the second quarter was little changed from last year, as revenue grew 3 percent against an adverse currency impact. Adjusted earnings and revenue topped Wall Street view.
Muhtar Kent, CEO, said, "We are pleased with our second quarter and year-to-date results. We are delivering consistent quality performance in line with our 2020 Vision growth targets, despite a very challenging and increasingly unpredictable global economy. Notably, we continue to gain global volume and value share by giving our consumers what they are looking for."
Net income attributable to shareholders of the company was $2.79 billion compared to $2.80 billion last year. Net income per share grew to $1.21 from $1.20. The prior-year results have been adjusted to include a change in accounting methodology.
Adjusted earnings grew to $1.22 per share from $1.17 per share. On average, 14 analysts polled by Thomson Reuters expected earnings of $1.19 per share for the quarter. Analysts' estimates typically exclude special items.
Net operating revenues grew 3 percent to $13.09 billion from $12.74 billion. Currency neutral net revenues grew 7 percent. Analysts expected revenues of $12.98 billion.
Revenue grew 5 percent each in North America as well as Eurasia & Africa, while it dropped 9 percent in Europe.
The company reported global volume growth of 4 percent in the second quarter with North America volume growing 1 percent and international volume improving 5 percent. Volume performance was soft in Europe due to economic slowdown and unfavorable weather.
According to the company, in nonalcoholic ready-to-drink or NARTD beverages, global volume and value share improved in the quarter with gains across nearly every beverage category.
The drink maker recently announced a $3 billion investment in India through 2020, underlining its focus on the BRIC nation as a long-term strategic growth market. This is in addition to an already-announced $2 billion investment earmarked for India's fast-growing NARTD market.
Coca-Cola said today that its productivity and reinvestment program, aimed at incremental annualized savings of $550 to $650 million by the end of 2015, is on track.
The company's peer PepsiCo Inc. (PEP: Quote) is slated to report quarterly results on July 25. Analysts expect earnings of $1.10 per share on revenues of $16.66 billion.
KO closed on Monday at $76.48, compared to the previous close of $77.28, on 8.03 million shares. The stock is up 1.2 percent in pre-market activity.
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by RTT Staff Writer
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