GLOBAL: Coca-Cola Co sees nine-month profits drop

By | 15 October 2013

  • Nine-month net profits fall 4% to US$6.87bn
  • YTD net sales fall 2% to $35.8bn
  • Nine-month operating profits drop 6% to $8.1bn
  • YTD volumes up 2% 
Coca-Cola has seen sales and profits down in its year-to-date

Coca-Cola has seen sales and profits down in its year-to-date

The Coca-Cola Co has reported a single-digit drop in nine-month net profits and sales, but profits decreases slowed as third-quarter results improved. 

Net profits fell by 4% to US$6.9bn in the nine months to 27 September, the Atlanta-based company said today (15 October). Net sales were down by 2% to $35.8bn over the same period while operating profits dropped by 6% to $8.1bn.

Third-quarter numbers, however, showed Coca-Cola fighting back after a disappointing H1 that the company blamed on poor weather in the US and Europe

Q3 net profits climbed by 6% to $2.4bn despite a 3% drop in sales. Operating profits were down by 12% to $2.5bn as “structural changes” bit in. Coca-Cola said that, without the changes and on a neutral currency basis, operating profits increased by 8% for the three-month period.

Chairman and CEO Muhtar Kent called the third-quarter results “sound” in the face of “an ongoing challenged macroeconomic environment”.

Volumes continued to grow, up 2% for both Q3 and YTD, the company said. Worldwide sparkling beverage volumes were up 1% in Q3 and 2% year to date, while global brand Coca-Cola volumes grew 2% in both the quarter and year to date. Brand Coca-Cola also found volumes growth in North America, up by 2%.

The sparkling beverage growth will come as a relief to Coca-Cola, which has been battling falling CSD sales in the US and other developed markets. An analyst in August suggested that the CSD category would continue to suffer in the US even if cold and wet weather in the first half of the year improved.

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

To access all just-drinks articles on Coca-Cola's Q3 & YTD results, click here.

Expert analysis

The Coca-Cola Company - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report

MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage.

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

US: Ardagh Group strikes deal with FTC over Saint-Gobain unit buy

Ardagh Group has agreed to sell six US glass container production sites to appease anti-trust concerns over its US$1.7bn acquisition of fellow glassmaker Saint-Gobain's US unit, Verallia.

Product Launch - US: The Coca-Cola Co's Vitaminwater Energy

The Coca-Cola Co has launched an energy extension to its Vitaminwater brand in the US that uses caffeine from green coffee beans.

US: PepsiCo turns to "real" sugar with summer cola launch

PepsiCo is to roll out three Pepsi extensions in the US sweetened with "real" sugar.

Read more on this hot issue

Round-Up - The Coca-Cola Co's Q3 & YTD Results 2013

In mid-October, the Coca-Cola Co released its Q3 and year-to-date results. Here's a round-up of just-drinks' coverage of the company's performance in the three and nine months to the end of September.

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