Coca-Cola Co "transformation" continues, as Q1 sales, profits fall
- First-quarter net profits slip 5% to US$1.49bn
- Sales in three months to end of March fall 4% to $10.28bn
- Operating profits dip 7% to $2.14bn
- Volumes rise by 2%
- Read our post-results analysis here
Sales and profits slid for Coca-Cola in the first three months of 2015
The transformation of The Coca-Cola Co is continuing, according to its CEO, as sales and profits both slipped in the first quarter of 2016.
In Q1 results, released earlier today, Coca-Cola saw reported net sales decline 4%, while net profits were down 5% on the same period in 2015. In organic terms, however, sales increased by 2%, driven by concentrates and positive price/mix.
"We continue to transform The Coca-Cola Co into a company that is focused on our core value creation model of building strong brands, enhancing customer value and leading our franchise system," said Muhtar Kent. The comments echo the description of 2015 by Kent last February as being a "transition year".
In its full-year results, released in February this year, Kent said the company had completed the "transition" - with a 4% fall in 2015 reported sales. Meanwhile, the company continues to ramp up its bottler re-franchising initiatives.
Of today's results, Kent said: "Amidst a challenging global macro environment, the continued focus on our five strategic initiatives enabled us to gain global value share in the first quarter and deliver positive top-line growth and strong underlying margin expansion.
"Our operating results are driven by our commitment to sustainable growth, and we are confident that we have the right strategies in place to achieve our full-year outlook and drive long-term value for our system and shareowners."
Looking forward, Coca-Cola said organic sales are expected to remain in line with its long-term target - up by 4% to 5% in the full-year.
To read the company's official statement, click here.
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