just On Call - Nowhere left but up for Europe - Coca-Cola Co

By | 16 October 2012

The Coca-Cola Co sees light at the end of the tunnel for Europe

The Coca-Cola Co sees light at the end of the tunnel for Europe

Europe has finally hit rock bottom and economic pressures will stabilise over the coming year, the Coca-Cola Co has said.

Volumes in the region remained flat in Coca-Cola's year-to-date results, released today (16 October), but operating profits slipped by 14%, with sales dropping by 7%. However, in a conference call with investors, Coca-Cola CFO Gary Fayard said the losses were due to macro-economic difficulties that were now levelling out.

“Don't expect it to get worse,” Fayard said. “We are at the bottom of it now and we should be coming out of it.

“If you go to the cafés of Madrid, you won't see people drinking Coke or coffee,” he said. “It is a shift in consumer spending in Europe from immediate consumption much more to future consumption. People continue to love our brands but they are now taking them home to drink.”

Coca-Cola CEO Muhtar Kent added that heavy rainfall in Europe had badly affected this year's results and the company did well not to lose volumes.

“If even in these conditions we can crack the calculus for growth, then we will certainly be coming back quite significantly,” Kent said.

Kent told investors that Coca-Cola is still confident it will hit year-end targets, despite needing double-digit growth in the fourth quarter. "We fully expect to dock our ship yet again in line with our long-term growth target," Kent said, adding that two extra days of trading compared to last year's Q4 and postive currency trends will benefit the company.

Expert analysis

Coca Cola Bottling Co. Consolidated - Strategy and SWOT Report

Coca Cola Bottling Co. Consolidated - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360° view of the company.Features:- Detailed information on Coca Cola Bottling Co. Consolidated required for business and competitor intelligence needs- A study of the major internal and external factors affecting Coca Cola Bottling Co. Consolidated in the form of a SWOT analysis- An in-depth view of the business model of Coca Cola Bottling Co. Consolidated including a breakdown and examination of key business segments- Intelligence on Coca Cola Bottling Co. Consolidated’s mergers and acquisitions (M&A), strategic partnerships and alliances, capital raising, private equity transactions, and financial and legal advisors- News about Coca Cola Bottling Co. Consolidated, such as business expansion, restructuring, and contract wins- Large number of easy-to-grasp charts and graphs that present important data and key trends

Sectors: Company results, Soft drinks

Companies: Coca-Cola Co, Coke

View next/previous articles

Currently reading -

just On Call - Nowhere left but up for Europe - 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 (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...

Sports and Fitness Nutrition Foods and Drinks

This report analyzes the worldwide markets for Sports and Fitness Nutrition Foods and Drinks in US$ Million by the following Product Segments: Sports/Energy Foods, and Sports/Energy Drinks....

Nestlé SA in Soft Drinks (World )

In contrast to global rivals Danone, The Coca-Cola Co and PepsiCo, Nestlé remains heavily reliant on developed markets for its soft drinks business. Although it is in a strong competitive position in the US, given the mature nature of bottled water i...

Related articles

just The Preview - The Coca-Cola Co's Q1

The Coca-Cola Co will report its first quarter results on Tuesday (16 April). Here, just-drinks takes a look at the group's highs and lows in the three months to the end of March.

UK: Juicy Water back on shelves after name re-think

Innocent has returned a line of fruit-flavoured bottled water back to its original name six years after the initial rebranding.

Comment – Soft Drinks & Water - Where Next for Pepsi Next?

Just over six months ago, PepsiCo garnered quite a few headlines when it launched Pepsi Next in Australia. What caught the industry's eye was that this marked the first time that the company had used stevia in the reduced-sugar brand. Ray Rowlands of Drinksinfo Ltd takes a closer look at the variant and asks: What's next?

Read further items in this columns

just On Call

We report back from drinks companies' conference calls post-results announcement.

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