Analysis

Analysis - Doubts raised over Coca-Cola Co's H2 prospects

Most popular

Interview - Pernod Ricard CFO Helene de Tissot

The just-drinks Analyst returns

Pernod breaks boundaries with Chinese distillery

just-drinks speaks to Pernod CEO Alex Ricard

just-drinks meets Asahi Europe's CEO - II

MORE

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

//i2.aroq.com/1/coca-cola-script-logo.jpg

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.


Related Content

Strong Q1 despite

Strong Q1 despite "murkiness" puts Coca-Cola in driving seat against peers - Analysis...

Stock fall highlights Coca-Cola's weak outlook but basics look sound - Analysis

Stock fall highlights Coca-Cola's weak outlook but basics look sound - Analysis...

The Coca-Cola Co reaps rewards of Quincey's innovation bet - Analysis

The Coca-Cola Co reaps rewards of Quincey's innovation bet - Analysis...

The Coca-Cola Co's Q3 2017 results - Preview

The Coca-Cola Co's Q3 2017 results - Preview...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?