US: Volumes steady, but profits down in Coca-Cola Co. Q1

The Coca-Cola Co. has posted a 10% slide in net profits for the first quarter of 2009.

The soft drinks giant said today (21 April) that net profits for the three months to 3 April fell by 10% on the corresponding quarter 12 months ago, coming in at US$1.36bn. Sales in the period were also down, albeit less so, by 3% year-on-year at $7.17bn, with volumes inching up by 2%.

Operating profits slipped by 1% to $1.86bn.

While the company's Europe, Eurasia & Africa and Latin America units saw sales slide by 13%, 10% and 5% respectively, the North America and Pacific regions registered sales growth of 8% and 14% respectively. These latter two divisions delivered operating profit growth of 32% and 18%, while Europe, Eurasia & Africa and Latin America reported operating losses of 6%, 9% and 10% respectively.

"While the global economic environment remains challenging, we are well positioned for long-term growth," said Coca-Cola's president and CEO, Muhtar Kent. "Our business was built for times like these. We again exceeded our long-term profit target and delivered solid volume results. In many worldwide markets, we outperformed the non-alcoholic ready-to-drink industry, driving further volume and value share gains.

"I am confident that, armed with strong brands and solid business fundamentals, our experienced management team will continue delivering against our long-term targets," Kent concluded.

Coca-Cola also said that it is on-track to deliver $500m in annualised savings from "productivity initiatives" by the end of 2011.