Coca-Cola profits fall as it adds new non-soda drinks
Net income in the first quarter was $1.2 billion, down 20.3 percent from the year-ago period.
Revenues fell 11.3 percent to $9.1 billion, reflecting lower sales from bottlers that were sold to franchisees as part of a corporate reorganisation.
One-time costs associated with the bottling refranchising also dented earnings.
Volumes were flat globally, including in North America, the biggest region by revenue. Volumes were down three percent in Latin America due to weakness in Brazil and Venezuela.
New products include "Honest Sport," a sports drink that is an offshoot of the low-sugar Honest Tea. The company is also launching Coca-Cola Plus in Japan, a no-sugar drink with dietary fibre aimed at Japan's large aging population.
"We are rapidly evolving our growth model to make changes that will result in an even more consumer-centric portfolio that meets people's changing tastes and preferences," said president James Quincey, who will become chief executive next month.
"Importantly, these portfolio changes will help our consumers moderate the amount of added sugar they consume."
Coca-Cola said it is boosting its cost-cutting programme to reach $800m annually by 2019.
Coca-Cola shares were up 0.1 percent to $43.32 in pre-market trade.
Source: AFP
Source: I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
