Shares of the Coca-Cola Company (NYSE: KO) climbed on Tuesday after the beverage producer posted better-than-expected earnings thanks to increase in sales both in the emerging markets and Europe.
Coca-Cola, which has seen its bottom line challenged due to falling consumption of Coke in the U.S, jump in raw material costs and global macroeconomic uncertainty (mainly Europe and China), is now revamping its operating structure. With an aim to enhance operational efficiency, the Company, starting from Jan 1, divided its business in three segments: Coca-Cola Americas, Coca-Cola International, and Bottling Investments Group.
For the fiscal first quarter, the Atlanta, Georgia-based Company reported a profit of $1.75 billion, or 39 cents a share, compared to $2.05 billion, or 45 cents a share, in the same quarter of last year.
Stripping out onetime items such as restructuring expenses, non-GAAP earnings came at 46 cents a share, up from 45 cents a share, in the same quarter of last year.
Revenue for the period slipped to $11.04 billion, from $11.14 billion, in the year-earlier quarter.
Analysts polled by Thomson Reuters were expecting earnings of 45 cents a share on revenue of $10.94 billion.
The Company said that sales volume in emerging markets such as Brazil, Russia, Thailand, Mexico and India was strong, while in China and the U.S. sales-volume showed a modest growth of 1%.
Total case volumes jumped 4% from the year-earlier quarter, thanks to 15% growth in Eurasia and Africa.
Gross margin slipped to 60.8% from 61%, in the same quarter of last year.
Commenting over the results, Coca Cola’s Chairman and CEO, Muhtar Kent said, “I am pleased with our first quarter performance results, having once again delivered solid growth against the backdrop of a still uncertain global economy,” adding that the company was “on track” to achieve its objectives by the year 2020.
At last check, shares were gaining around 5% to $42.10.
Recent Comments