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