GLOBAL: Coca-Cola Co blames weather as H1 profits fall

By | 16 July 2013

  • First-half net profits drop by 9% to US$4.43bn 
  • Net sales in six months to end of June fall by 2% to $23.8bn
  • Operating profits drop by 3% to $5.65bn
  • Brand Coca-Cola sees 2% H1 volume growth  
Coca-Cola has reported its first-half numbers today

Coca-Cola has reported its first-half numbers today

The Coca-Cola Company has pointed to “unusually” poor weather in its second quarter after reporting a drop in first-half profits and sales. 

The Atlanta, Georgia-headquartered group said today (16 July) that net profits in the six months to the end of June fell by 9% to US$4.43bn. Sales in the period were down by 2% at $23.8bn.

Operating profits also fell in the six months, down 3% at $5.7bn. 

Global group volumes in the period were up by 3%. 

In its second quarter, Coca-Cola's net profits dropped by 4% to $2.68bn, while sales fell by 3% to $12.75bn. Operating profits in the three months came in down 2% at $3.24bn. Group volumes in Q2 edged up by 1%. 

Brand Coca-Cola saw volumes grow 1% in Q2 and 2% in H1. 

Coca-Cola's chief executive, Muhtar Kent, admitted the group is “not happy” with the performance. “Our second quarter volume results came in below our expectations, reflecting an ongoing challenging global macroeconomic environment and unusually poor weather conditions in the quarter,” he said. 

“While we are not happy with our performance, we did gain global volume and value share in total nonalcoholic ready-to-drink beverages as well as in sparkling and still beverages in the quarter.”

Looking ahead, Kent said that “current dynamics” means the group is confident it will improve its second-half performance. 

Shares in Coca-Cola were trading down by 2.39% today at $40.03. 

To read the company's full statement, click here.

For a full round-up of just-drinks' coverage of Coca-Cola Co's H1 results, click here.

Expert analysis

The Coca-Cola Company (KO) - Financial and Strategic SWOT Analysis Review

The Coca-Cola Company (Coca-Cola) is one of the leading non-alcoholic beverage manufacturers in the world. The company undertakes the production, distribution and marketing of non-alcoholic beverages. It offers beverage concentrates, syrups, and finished sparkling and still beverages. The company’s non-alcoholic beverage portfolio includes juices and juice drinks, soft drinks, energy and sports drinks, ready-to-drink teas and coffees, waters and enhanced waters. It owns and markets the world’s leading non-alcoholic sparkling beverage brands, namely, Coca-Cola, Fanta, Diet Coke and Sprite.

Sectors: Company results, Soft drinks

Companies: Coca-Cola Co

There are currently no comments on this article

Be the first to comment on this article

Related research

Coca-Cola Co, The in Soft Drinks (USA)

The company is looking to solidify its position as the top US soft drinks manufacturer by broadening its portfolio of non-carbonates offerings through deals like purchasing VitaminWater maker Glacéau in 2007, acquiring a minority stake in coconut wat...

The Coca-Cola Co in Health and Wellness (World)

The Coca-Cola Co (TCCC) is the leading player in both soft drinks and in HW soft drinks. The company’s strength is based on its diversity of category presence from HW carbonates to RTD tea and bottled water. This allows the company to benefit from va...

Coca-Cola Co, The in Soft Drinks (World)

The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe and slow economic recovery in the US. It is actively expanding in low calorie carbonates to retain consumers and widening the use of nat...

Related articles

just For Subscribers - The week in drinks

Here are the ten most viewed, subscriber-only items on just-drinks this week:

US: ABA praises public-sector alliance over calorie cuts

The American Beverage Association (ABA) has said a report that claims US soft drinks makers are ahead of a calorie cut-back plan proves public and private sector co-operation can produce "real, tangible results".

Comment - Soft Drinks & Water - Will Shaking the Coca-Cola Bottle Return the Fizz?

Ray Rowlands of Drinksinfo Ltd starts 2014 with a look at the latest attempts by The Coca-Cola Co to reverse declining soda sales in its North American homeland.

Read more on this hot issue

Round-Up - Coca-Cola Co's H1 Results 2013

In July, The Coca-Cola Co posted its half-year and second-quarter results. Here's a round-up of just-drinks' coverage of the numbers

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page