US: Coca-Cola beats estimates with Q4 growth | Progresiv
Coca-Cola Co has reported better-than-expected profit and revenue figures for its fiscal fourth quarter, helped by cost cuts and cheaper commodity prices. For the three months to end-December, net operating revenue was down 8% to 10 billion dollars – the third straight quarter it has fallen. However, the results were largely due to the strength of the US dollar, and on an organic basis, revenue was down just 1%, considerably better than expectations. Meanwhile, reported net profit soared up around 61% to 1.24 billion dollars. 
Overall global volumes rose by 3% in the quarter, helped by a 2% rise in sparkling drinks, an 8% rise in bottled water, a 6% increase in bottled tea, 5% in juice, and 2% in sports drinks. On an organic basis, sales of Coca-Cola branded drinks rose by 1%, Sprite was up 3%, and Coca-Cola Zero grew by 7%, but Diet Coke and Coke Light reported a 5% drop.
Coca-Cola said it will continue with its plans to lower costs, and will now refranchise all its North America bottling operations by end-2017 (three years ahead of schedule), while also refranchising its bottling operations in China. It will also continue to focus on offering more small-pack formats globally, following the success of such a strategy in the US.
For 2016, Coca-Cola expects revenue to grow by 4%-5% on an organic basis, while pre-tax profit is forecast to grow by 6%-8% on a constant-currency basis. (www.kamcity.com)
