Coke's Profit and Revenue Fall--Update

By Anne Steele 

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 have 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. That followed flat global volumes in the second quarter -- the first quarter that volume didn't grow at the beverage giant since 1999.

In a further sign of stabilizing results, Coke reiterated its 2016 guidance, including 3% organic revenue growth and a 4% to 7% decline in comparable earnings per share. The company adjusted its revenue guidance down from 4% to 5% growth in July.

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, 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.

--Mike Esterl contributed to this article.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

October 26, 2016 09:26 ET (13:26 GMT)

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