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Coke's profit plunges

Wednesday, October 26, 2016 - 01:09

Coca-Cola's quarterly profit and revenue fell sharply. But as Fred Katayama reports, volume grew globally, and the results beat estimates.

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A strong dollar and weakness in Latin America took some of the fizz out of Coca-Cola. Quarterly profit fell 28 percent; revenue also dropped. But volume grew globally at the world's largest beverage maker, and the company said revenue growth was solid in the U.S., Japan, and Western Europe. Delivering that growth: the non-fizzy healthier stuff such as water and sports drinks. In the U.S., growth in energy drinks, Sprite and Fanta was offset by a decline in Diet Coke. Volume fell in Latin America due to weakness in Brazil and Venezuela. But Coca-Cola's profit and revenue beat analysts' forecasts. That drove shares higher in early trading. RBC Capital analyst Nik Modi said, "Coke grew 3 percent organically. They're doing just fine. They're doing a lot to transform their business with refranchising, new marketing campaigns and portfolio expansion, and I'm seeing a lot of early indicators a lot of this is working." Coca-Cola is sticking with its forecasts that call for full-year per share earnings to drop 4 to 7 percent.

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Coke's profit plunges

Wednesday, October 26, 2016 - 01:09