just On Call - Coca-Cola Co CEO claims Q2 results an "anomaly"
The head of Coca-Cola Co has argued that the group's second quarter performance is an “anomaly” caused by a combination of uncontrollable factors and not a “systemic” issue.
Speaking to analysts on a conference call today (16 July), following the company's results announcement, 'chief executive Muhtar Kent flagged that Germany, with major flooding, the US and India, with monsoons, had all suffered “unusual” weather in the three-month period. Coca-Cola's Q2 net profits fell by 4% $2.68bn, while sales dropped by 3% to $12.75bn. Global volumes edged up by 1%.
Kent also pointed to the “macroeconomic” climate and social unrest in Europe, the Middle East and Brazil as factors.
“We feel pretty confident that this was a confluence of events that happended all at the same time,” Kent told analysts.
He later added: “This is more of an anomaly, not a trend or a systemic issue.”
Looking ahead, Kent said he feels “very confident” for the next quarter, having travelled to many of the group's regions in the past five weeks. “We feel it will definitely be a better quarter volumetrically,” he added.
The CEO also flagged that Coca-Cola has continued to invest “aggressively” in its brands despite its recent struggles.
For a full round-up of just-drinks' coverage of Coca-Cola Co's H1 results, click here.
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