Coke Profit and Revenue Fall

Coca-Cola Co. said profit and revenue fell less than expected in the latest quarter as developed markets buoyed the top line despite softness abroad.

Overseas weakness and the stronger U.S. dollar have dragged results lately for the company, which generates about half its sales abroad but translates results into dollars. Higher prices and smaller packaging in the U.S. that costs consumers more per ounce has helped Coke offset those declines.

During the September period, Coke reported that its beverage volumes grew 1% world-wide and in Coke's key North American market.

On Wednesday, Chief Executive Muhtar Kent pointed to solid revenue results in developed markets with the U.S., Japan and Western Europe delivering "standout performance."

Noncarbonated drinks, which include tea, coffee and juice drinks, grew 3%, mostly owing to water and sports drinks.

Soda volumes were even in the quarter globally--as growth in three of the four geographic segments was offset by a decline in Latin America--and in North America, as growth in Sprite, Fanta and energy drinks was offset primarily by a decline in Diet Coke.

In all for the quarter, Coke posted a profit of $1.05 billion, or 24 cents a share, down from $1.45 billion, or 33 cents a share, a year earlier. Excluding certain items, per-share earnings were 49 cents, topping the 48 cents analysts polled by Thomson Reuters had forecast.

Revenue deflated 6.9% to $10.63 billion, but stayed above analysts' prediction for $10.51 billion. The company said foreign exchange shaved 2% off its revenue in the quarter.

Shares, up 1% so far this year, added 0.6% another premarket to $42.81.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

October 26, 2016 08:15 ET (12:15 GMT)

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