Coca-Cola 3Q Profit Edges Up
Coca-Cola Co., the world’s largest softdrink maker, said on Tuesday reported a slight increase in its third quarter profit driven by increase in sales and prices of its products worldwide.
The world’s largest softdrink maker Coca-Cola Co. on Tuesday reported a slight increase in its third quarter profit driven by increase in sales and prices of its products worldwide.
In a report, Coca-Cola said that its earnings reached $2.22 billion or 95 cents per share in July to September 2011, up from the $2.06 billion or 88 cents per share a year ago.
Excluding some items, the company’s profit was pegged at $1.03 per share, beating analysts’ expectation of $1.02 per share for the period.
Coca-Cola’s revenue, on the other hand, spiked up to $12.25 billion, up by 45 percent last year and higher than earlier forecast of $12.01 billion.
The world’s largest softdrink manufacturer – whose brands range from Sprite, Coke, Powerade, and Minute Maid – attributed the growth to the acquisition of its North American bottling unit last year, prices increases, and a 5-percentage point currency benefit.
Based on the date, global sales volume rose by 5 percent while volume in North American also increased by 5 percent, driven by cross-licensed brands like Dr. Pepper.
Meanwhile, sales volume also increased in Latin America and Europe, recording 7 percent and 2 percent growth, respectively. EuroAsia and Africa also increased its sales by 7 percent while the Pacific region posted a 6 percent gain.
But despite the relatively strong earnings report, Coca-Cola shares feel 20 cents to $66.80 in premarket trading.