Coca-Cola is hoping its first-half was a blip

Coca-Cola is hoping its first-half was a blip

An analyst has questioned Coca-Cola Co's confidence that its second half will improve, after posting “disappointing” H1 results earlier this week.

The group pointed to poor weather in many of its key regions as the reason for a drop in sales and profits in yesterday's (16 July) half-year numbers. Later in a conference call, CEO Muhtar Kent branded the period an “anomaly”, pointing to a combination of unforseen factors. 

But, in a note today, Bernstein analyst Ali Dibadj said he is not clear on “whether and how things will improve” for the group this year. He added: “The company seems optimistic about more favourable results across the board in H2, but what is expected to drive the improvement, especially if macro weaknesses persist and competitive pressure in many markets continue to rise?”

Dibadj also raised concerns about the market for Coca-Cola in China. He questioned how much of the group's deceleration in the country was down to the economy, compared to competition and “evidence of an already-maturing” category.

However, looking further ahead the analyst said: “We see Coca-Cola benefiting from strong momentum and a broadly healthy global system, solid long-term prospects for mid-single digit top-line growth, and significant cost cutting opportunities.”

For a full round-up of just-drinks' coverage of Coca-Cola Co's H1 results, click here.