Focus - Coca-Cola Co's Q4 & FY Performance by Region
Sales in North America were mainly flat
- Eurasia & Africa
Case volumes in the region were up by 4% in 2014, as still beverages jumped by 8% and sparkling by 3%.
Reported sales, however, slipped by 1%, as currency fluctuations impacted the top line. Currency-neutral sales increased by 8%. Reported operating profits remained flat, but were up 14% on a currency-neutral basis.
For the fourth-quarter, Coca-Cola said volumes growth was “relatively balanced” with mid single-digit growth in its Southern Africa, Middle East & North Africa and Central, East & West Africa business units.
Case volumes were down in the year by 2% as sparkling volumes fell by 3%. Still volumes, meanwhile, were up by 1%.
Coca-Cola blamed competitive pressures and softness in the macroeconomic environment for the volumes performance. It also said that its decline in sparkling beverage volumes reflected “the continued impact of downsizing our primary future consumption package in key markets to strengthen our price/pack architecture”.
Sales in Europe, however, climbed by 4% on a reported basis and 2% on a currency-neutral basis. Reported operating profits remained flat.
- Latin America
Case volumes were up by 1% as still beverages increased by 6% and sparkling came in flat.
An unfavourable currency exchange rate pushed reported sales down by 6%. Without the currency rate effect, though, sales were up by 9%. Reported operating profits for 2014 plunged by 20% but increased by 2% on a currency-neutral basis.
For the fourth-quarter, volumes in Brazil climbed by 5%, off-setting a 1% decrease in Mexico, which last year implemented a sugar tax. Growth in still beverage volumes was attributable to packaged water, value-added dairy and sports drinks, Coca-Cola said.
- North America
Case volumes remained flat as sparkling volumes slipped by 1% and still increased by 1%.
Reported net sales were down by 1%, but currency-neutral sales inched up by 1%. Coca-Cola said it gained share in still and sparkling beverages in the region.
Reported operating profits for the full year were up by 1%.
Case volumes rose by 5% in the full year, as sparkling beverages increased by the same amount and still volumes edged up by 4%. However, sales were down 2% on a reported basis because of currency fluctuations, Coca-Cola said. Currency-neutral sales were up by 3% for the full year.
The region's reported operating profits fell by 1% in the year.
For the fourth quarter, volumes in India grew by “high single-digits”, Coca-Cola said. In Japan, volumes fell by 1%, while in China they dropped by 3%. However, brand Coca-Cola saw volumes increase by 3% in China for the quarter.
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