US: Coke reports net loss of US$125m after accountancy change
The world's largest soft drink maker, Coca-Cola Co, has reported a net loss of US$125m for the first quarter 2002 after the impact of new accounting rules, but earnings excluding items topped expectations, driven by good volume growth worldwide. The company reported income of US$863m a year earlier.
Coke reaffirmed its outlook for the full year of 5 to 6% volume growth, although Coca-Cola conceded that it faced economic challenges in many of its market.
"We are encouraged by this good, solid quarter of performance in the face of a continuing challenging global economic environment," Douglas Daft, Coca-Cola's chairman and chief executive officer, said in a statement. "The execution of our strategic priorities is driving healthy growth from both our carbonated and non-carbonated brands."
Coke has adopted a new accounting rule that eliminates amortization of goodwill as a quarterly expense. That adjustment reduced per-share earnings by 37 cents. The company also recorded a noncash charge of six cents a share, primarily related to investments in Latin America caused by the economic crisis in Argentina and a one-cent gain from the sale of Cervejaria Kaiser, Brazil's second-largest brewer, to Molson Inc.
Excluding items, Coke beat analysts expectations by reporting earnings of 40 cents per share compared with 35 cents a share, a year before. Revenue rose 3% to $4.08 billion from $3.96 billion.
Worldwide unit case volume increased more than 5%, driven by growth of 5% or more in the key markets of the US, Japan, Mexico and Germany. But Latin American was hurt by economic troubles in the region, and Coke said it is working to minimise the impact on its businesses there.
Coke said carbonated soft drinks volume grew by 3% in the quarter, while non-carbonated beverages volume rose 22%.
Molson Coors is more likely than not to keep hold of its Brazilian operations because of the huge potential of the market there, an analyst has said. This is despite a run of poor results from the com...
Molson is to start production of Coors' Blue Moon beer for the US market from its Montreal brewery....
First quarter losses announced last week by Molson Coors are wider than originally reported, according to a recent filing....
Molson Coors Brewing Company disappointed investors yesterday by reporting a net loss for the first quarter of 2005. The company said that it had achieved higher consolidated net sales and sales volum...
Molson Coors Brewing Company said yesterday that Daniel J. O'Neill, Vice-chairman, synergies and integration and formerly president and CEO of Molson Inc, has chosen to leave the company May 31 of thi...
Heineken has its eyes on possible acquisitions in Latin America, according to the company's CEO....
Molson Canada has announced it has acquired Ontario microbrewery Creemore Springs Brewery Ltd. Established in 1987, the brewery in Creemore, Ontario, 120 kilometres northwest of Toronto, employs 50 pe...
Peter M. R. Kendall, chief executive officer of Coors Brewers Limited, the European business unit of Molson Coors Brewing Company, will retire from his post on 1 May....
- Comment - Diageo Spins the Guinness Wheel... Again
- Diageo's Labels Give Industry Something to Digest
- Comment - 'Craft' and the Danger of 'Romance Copy'
- Is A-B InBev/SABMiller 'Mega-Merger' Off?
- Who should Stock Spirits Acquire?
- Diageo lines up UK innovations push
- Craft is an 'abused' term - Pernod Ricard exec
- Pernod Ricard queries nutritional label use
- SPI Group 'disappointed' over Stolichnaya ruling
- Diageo's Guinness Golden Ale
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Champagne: Less Than Bubbly
- Beer Market Insights Africa 2014
- ALDI 2015: Radically transforming Anglo Saxon grocery markets