GLOBAL: Coca-Cola Co blames weather as H1 profits fall
- First-half net profits drop by 9% to US$4.43bn
- Net sales in six months to end of June fall by 2% to $23.8bn
- Operating profits drop by 3% to $5.65bn
- Brand Coca-Cola sees 2% H1 volume growth
Coca-Cola has reported its first-half numbers today
The Coca-Cola Company has pointed to “unusually” poor weather in its second quarter after reporting a drop in first-half profits and sales.
The Atlanta, Georgia-headquartered group said today (16 July) that net profits in the six months to the end of June fell by 9% to US$4.43bn. Sales in the period were down by 2% at $23.8bn.
Operating profits also fell in the six months, down 3% at $5.7bn.
Global group volumes in the period were up by 3%.
In its second quarter, Coca-Cola's net profits dropped by 4% to $2.68bn, while sales fell by 3% to $12.75bn. Operating profits in the three months came in down 2% at $3.24bn. Group volumes in Q2 edged up by 1%.
Brand Coca-Cola saw volumes grow 1% in Q2 and 2% in H1.
Coca-Cola's chief executive, Muhtar Kent, admitted the group is “not happy” with the performance. “Our second quarter volume results came in below our expectations, reflecting an ongoing challenging global macroeconomic environment and unusually poor weather conditions in the quarter,” he said.
“While we are not happy with our performance, we did gain global volume and value share in total nonalcoholic ready-to-drink beverages as well as in sparkling and still beverages in the quarter.”
Looking ahead, Kent said that “current dynamics” means the group is confident it will improve its second-half performance.
Shares in Coca-Cola were trading down by 2.39% today at $40.03.
To read the company's full statement, click here.
For a full round-up of just-drinks' coverage of Coca-Cola Co's H1 results, click here.
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