Falling international sales continue to dog Coca-Cola

 AFP, NEW YORK: The sluggish global economy, more and healthier competition, and currency market turbulence again dragged on Coca-Cola Co.'s earnings in the second quarter, the company said yesterday.
Net earnings rose 10.9 per cent and core earnings per share beat expectations by two cents at 60 cents. But net revenues slid in every region but North America, for a 5.1 per cent fall overall in net sales from a year ago to $11.5 billion.
Sales of concentrate and cases were flat in volume terms, with the company saying slowdowns in emerging markets like China and Argentina offset gains in the United States, Mexico and Japan.
Volume sales of soda drinks fell slightly in the quarter, but that was compensated for by gains in sales of bottled water and juices, the company said. But Atlanta-based Coke said its bottom line was hit significantly by the strong dollar's impact on earnings from countries with weak currencies, and would continue to be a headwind for the rest of the year.
For the second quarter, the global soft drinks king reported that lower taxes and lower extra costs helped bolster the bottom line. Net income was $3.45 billion, compared to $3.11 billion in the year-ago quarter.
Chairman and chief executive Muhtar Kent said in a statement that the company faced challenges mostly in emerging markets where Coca-Cola owns its own bottling businesses.

Falling international sales continue to dog Coca-Cola

AFP, NEW YORK: The sluggish global economy, more and healthier competition, and currency market turbulence again dragged on Coca-Cola Co.s earnings in the second quarter, the company said yesterday. Net earnings rose 10.9 per cent and core earnings per share beat expectations by two cents at 60 cents. But net revenues slid in every region but North America, for a 5.1 per cent fall overall in net sales from a year ago to $11.5 billion. Sales of concentrate and cases were flat in volume terms, with the company saying slowdowns in emerging markets like China and Argentina offset gains in the United States, Mexico and Japan. Volume sales of soda drinks fell slightly in the quarter, but that was compensated for by gains in sales of bottled water and juices, the company said. But Atlanta-based Coke said its bottom line was hit significantly by the strong dollars impact on earnings from countries with weak currencies, and would continue to be a headwind for the rest of the year. For the second quarter, the global soft drinks king reported that lower taxes and lower extra costs helped bolster the bottom line. Net income was $3.45 billion, compared to $3.11 billion in the year-ago quarter. Chairman and chief executive Muhtar Kent said in a statement that the company faced challenges mostly in emerging markets where Coca-Cola owns its own bottling businesses.