COCA-COLA, the world’s largest soft drinks company by revenues, reported a decline in its second-quarter earnings as the strong US dollar and weakness in Europe dragged soda sales down.
Net income declined to $2.79 billion, or $1.21 a share, from $2.8 billion, or $1.20 a share, in the same quarter a year ago.
The results were better than Wall Street analysts predicted and Coke shares rose 1.78 per cent to $77.84 in lunchtimes trading.
Revenues rose 3 per cent year-on-year to $13 billion. The impact of the strong dollar shaved four percentage points off Coke’s sales growth during the quarter.
Chief executive Muhtar Kent said the company was working in a “very challenging and increasingly unpredictable global economy”.
Sales volume growth was strongest in India, Russia and China, but grew only 1 per cent year-on-year in the US.
Those gains offset weakness in Europe, where sales fell five per cent. Coke continues to invest heavily in emerging markets. Last month the company said it would invest an additional $3 billion in India during the next eight years. – Copyright The Financial Times Limited 2012
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