US: Coca-Cola Co "pleased" with H1 as sales, volumes rise but Q2 profits slow

By | 17 July 2012

  • H1 net profits come in up by 3% at US$4.84bn
  • Net sales in six months to end of June rise by 4% to $24.22bn
  • Operating profits rise by 6%, totalling $5.80bn
  • Worldwide volumes in six-month period up by 5%
The Coca-Cola Co released its H1 numbers earlier today

The Coca-Cola Co released its H1 numbers earlier today

The Coca-Cola Co has posted a slowing of net profits in its second quarter, as net sales and volumes in the first half of 2012 rose.

Net profits in the six months to the end of June increased by 3% to US$4.84bn, the Atlanta-based company announced today (17 July). Net sales rose by 4% over the same period, while operating profit delivered a 6% lift to $5.08bn.

The healthy H1 figures came on the back of a 5% increase in worldwide volumes over the same six-month period a year earlier and continuing strong quarterly performances in BRIC countries' volumes growth.

However, growth in Q2 net profits were flat, slipping by 0.4% compared to an 8% jump in Q1. Net profits for the quarter were $2.79bn, although net sales rose by 3% to 13.09bn and operating profit increased by 4% to 3.29bn. 

“We are delivering consistent quality performance in line with our 2020 Vision growth targets, despite a very challenging and increasingly unpredictable global economy,” said chairman & CEO Muhtar Kent. “Notably, we continue to gain global volume and value share by giving our consumers what they are looking for - meaningful brand connections, wide-ranging product and package choices, greater information about our brands, and significant investments in programmes that support healthy and active lifestyles, all at the heart of our brand values.”

India was once again the star performer for Coca-Cola, posting the same 20% volume growth in Q2 that it did in Q1. Other BRIC countries also came out strongly in Q2, with Russia delivering 9% growth, China 4% and Brazil 6%. Mature markets were flatter, although Japan managed an encouraging 4% volume growth in Q2.

Despite India's star turn, Pacific was Coca-Cola's best performing region, with 9% net sales growth in H1 and 7% in Q2.

Europe continued its drag on overall performance as it posted a 6% net sales drop in H1 and 9% in Q2, with 2% and 4% volumes declines, respectively. The US posted 1% volumes growth in both H1 and Q2.

To read the official release, click here.

To read just-drinks' coverage of Coca-Cola Co's results conference call, click here.

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The Coca-Cola Company - Strategy, SWOT and Corporate Finance Report

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Sectors: Company results, Soft drinks, Water

Companies: Coca-Cola Co

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US: Coca-Cola Co "pleased" with H1 as sales, volumes rise but Q2 profits slow

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