Beverages giant Coca-Cola Co. (KO) reported Tuesday a 55% rise in fourth-quarter profit as revenues increased from the prior year, helped by positive concentrate pricing as well as geographic country mix.
In addition, earnings per share were positively impacted by relative weakness of the U.S. Dollar. The company noted that worldwide unit case volume grew 5% during the quarter, driven by international volume growth of 6%. For the fourth quarter, net income attributable to share owners of the Atlanta, Georgia-based company increased to $1.54 billion or $0.66 per share from $995 million or $0.43 per share reported in the same period last year. Non-GAAP net income attributable to share owners was $1.55 billion or $0.66 per share, compared to a net income of $1.48 billion or $0.64 per share in the year-ago quarter. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.67 per share for the quarter. Analysts' estimates typically exclude special items.
For the third quarter, the company had reported net income that was flat with the prior-year quarter at $1.90 billion or $0.81 per share. Net operating revenues for the fourth quarter grew 5% to $7.51 billion from $7.13 billion in the prior year. Seven analysts had a consensus revenue estimate of $7.21 billion for the quarter. The company noted that fourth-quarter net revenues were impacted by six fewer selling days compared to the prior year. "The combined power of the global "Open Happiness" campaign and the strength of holiday programs drove growth in brand Coca-Cola," the company said. For the sequential third quarter, net operating revenues declined 4% to $8.04 billion from $8.39 billion in the same quarter last year. Net operating revenues from Eurasia & Africa during the fourth quarter increased 7% to $542 million from $507 million in the year-ago quarter. Europe generated revenues of $1.19 billion, marginally up from $1.17 billion last year. Revenues from Latin America grew 19% to $1.12 billion from $941 million in the year earlier.
North America posted net operating revenues of $1.89 billion, compared to $1.97 billion in the year-ago quarter. Revenues from Pacific increased 5% to $1.14 billion from $1.09 billion in the previous year. Bottling Investments revenues grew 12% to $2.04 billion from $1.83 billion reported in the fourth quarter of fiscal 2008. Corporate revenues surged 50% to $24 million from $16 million in the prior year.
Operating income for the quarter was $1.78 billion, up from $1.71 billion in the same quarter a year ago. Non-GAAP operating income was $1.88 billion, compared to $1.81 billion last year. Equity income for the quarter was $172 million, compared to a loss of $440 million in the preceding year quarter. The company noted that worldwide unit case volume grew 5% during the quarter, driven by international volume growth of 6% and is in line with the company's long-term volume target.
According to the company, there was a significant increase in unit case volume in key emerging markets, with a growth of 29% in China and 20% in India. In developing markets, Brazil reported an increase of 8% and unit case volume grew 4% in Mexico. Regarding developed markets, volume grew 12% in France and 3% in Germany. In Eurasia and Africa, Group's unit case volume increased 5% during the quarter, sparkling beverages increased 4% and still beverages increased 9%. In Europe, unit case volume increased 1% and in Latin America, the company continued to deliver strong unit case volume growth with 7% increase for the quarter. Pacific Group delivered unit case volume growth of 11% and Bottling Investments Group's unit case volume increased 13%. Worldwide unit volumes grew 2% in the third quarter, helped by international operations primarily in India and China. However, a stronger dollar offset the company's strength in international operations. For the full year, net income attributable to share owners of the company increased to $6.82 billion or $2.93 per share from $5.81 million or $2.49 per share in the prior year. Net operating revenues for the year decreased to $30.99 billion from $31.94 billion in the preceding year. Muhtar Kent, chairman and chief executive officer said, "We ended this year on a high note, delivering global volume and value share gains, comparable currency neutral revenue growth, improved productivity and increased cash flows." Further, the company added that its productivity initiatives are well on track to achieve the goal of $500 million in annualized savings by year-end 2011. Coca-Cola has realized more than half of the savings by the end of 2009. "Now, with our 2020 Vision as our roadmap, we look forward to entering our next decade of growth as we work closely together with our bottling partners to usher in a new era of winning for the Coca-Cola system," added Kent. Coca Cola's peer, Purchase, New York-based Food and beverage giant PepsiCo, Inc. (PEP) is slated to release its fourth-quarter results on February 11. Wall Street analysts project December quarter earnings of $0.91 per share on revenues of $13.27 billion. PepsiCo has revised its outlook for fiscal 2009, while reaffirming its forecast for fiscal 2010.
Meanwhile, Plano, Texas-based non-alcoholic beverages maker Dr. Pepper Snapple Group, Inc. (DPS) is expected to earn $0.43 per share in the fourth quarter on revenues of $1.40 billion. PepsiCo recently announced an agreement with Dr Pepper Snapple to manufacture and distribute certain Dr Pepper products following its acquisition of two anchor bottlers, Pepsi Bottling Group Inc. (PBG) and PepsiAmericas Inc. (PAS). KO is currently trading at $54.38, up $1.74 or 3.30% on a volume of 5.615 million shares. In the past 52 weeks, the shares have been trading in a range of $37.44 to $59.45.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.