Coke's Results Decline Though Volumes Improve

By Michael Calia 

Coca-Cola Co. said its first-quarter earnings and revenue declined, though soda volumes for the beverage giant edged up.

Coke has launched an aggressive, wide-ranging marketing effort while investing in core carbonated drinks and introducing new products as it struggles with progressively worse trends in soda sales. Last month, trade publication Beverage Digest said the industry suffered its ninth straight yearly volume contraction last year as consumers increasingly abandoned diet sodas, which Coke, PepsiCo Inc. and their rivals have relied on to make up for falling sales in sugary soda.

Coke's worldwide unit-case soda volumes rose 2% in the first quarter, with flat volumes in North America. The company has targeted 3% to 4% annual soda volume growth, a goal some observers have dismissed as unrealistic.

Overall, Coke posted a profit of $1.62 billion, or 36 cents a share, down from $1.75 billion, or 39 cents a share, a year ago. Excluding items, per-share earnings came in at 44 cents.

Revenue fell to $10.58 billion. Excluding certain structural changes, currency-neutral net revenue improved 2% for the quarter, the company said.

Analysts surveyed by Thomson Reuters had expected earnings of 44 cents a share and revenue of $10.55 billion.

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