US: Acquisitions boost Coca-Cola in Q4
The company attributed the rise in income in part to strong sales of water brands and other products which it had recently acquired or licensed.
Revenues were up by 14.3% from US$4.2 billion to US$4.8 billion. Worldwide unit case volume rose by 6% in the fourth quarter and by 5% for the year. Unit case volumes in North America increased by 5% for the quarter and by 6% for the year as a whole, driven by strong growth in both carbonated and non-carbonated sales.
"Throughout the year, we outpaced the rest of the industry in each of the major beverage categories," said Coca-Cola chairman and CEO, Douglas Daft."We grew our carbonated soft drinks by 2% during the year and non-carbonated beverages by 28%. In the juices and juice drinks category, our growth of 21% was well ahead of the industry's 4% growth. Across 70 countries, Powerade grew 25% and was ahead of the industry average, while our water business grew by 68%, well above the global industry's 8% rate. Overall, we were pleased with our results in 2002 in the face of a difficult macroeconomic environment, and we are confident about how we will execute in 2003."
Coca-Cola said it expects to take a charge of around US$400m against 2003 earnings on a pre-tax basis in respect of the restructuring of its operations in North America and Germany. In North America, it is combining its Coca-Cola North America, Minute Maid, and Fountain operations, resulting in around 1,000 job losses. In Germany, Coca-Cola Erfrischungsgetraenke AG is closing three bottling plants, making 900 people redundant.
As a result of these changes, Coca-Cola said it expects to see pre-tax benefits of at least US$50m in 2003 and US$100m on an annualized basis from 2004.
According to a First Call poll of analysts' estimates, Coca-Cola is expected to post first-quarter earnings of 40 cents a share, second-quarter earnings of 56 cents a share, and full-year 2003 earnings of $1.92 a share.
- Interview Berry Bros & Rudd CEO Dan Jago - Part II
- Heineken's new range foreshadows craft's future
- Interview Berry Bros & Rudd CEO Dan Jago - Part I
- Gruppo Campari Q4 & FY 2016 results - Preview
- Will fat-blocking products save the day for CSDs?
- Diageo faces US$68m payout after SAP court loss
- Pernod Ricard's Method and Madness Irish whiskey
- Wm Grant names Victor Jerez business director
- Heineken hit by Greek compensation claim
- Cognac set for future growth - research
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine market in UK