US: Coca-Cola results highlight gradual revival | Progresiv
Coca-Cola has reported second–quarter results that were in line with forecasts, encouraging it to retain its full-year forecasts. The group stressed that the results show that its revival plan is beginning to bear fruit. 
For the quarter, revenues were down 3% to 12.2 billion dollars, as the strong US dollar hurt international results – they were up 4% on an underlying basis. Net profit jumped up 19% to 3.1 billion dollars, despite higher advertising costs. And global volumes were up 2%, helped by a 2% rise across the key North American market, with sparkling drinks up 1% and still drinks up 5%.
Executives said the results show that its plan to increase advertising, hike prices, and introduce smaller packaged drinks was beginning to work. Coca-Cola noted that sales of smaller-format drinks are growing by double-digits.
However, the group also offered some caution on key international markets, particularly China, Russia, and Brazil. CEO Muhtar Kent noted: “Given the current overall macroeconomic environment in China we are still cautious for the near term, but are excited by the long-term prospects we see in this dynamic and important market”. (www.kamcity.com)
