Tags: Coca | Cola | earnings | profit

Coca-Cola: Stronger Volume Lifts Profit 8 Percent

Tuesday, 17 April 2012 08:07 AM

The Coca-Cola Co. said Tuesday that its net income rose 8 percent in the first quarter as it sold more of its beverages around the world.

The world's biggest drinks maker said it earned $2.05 billion, or 89 cents per share, for the three months ended March 30. That's compared with a net income of $1.9 billion, or 82 cents per share, in the year-ago period.

Analysts on average expected a profit of 88 cents per share, according to Fact Set.

Shares of Coke rose 76 cents, or 1.1 percent, to $73.20 in premarket trading.

The Atlanta-based company said the higher profit was driven by a 5 percent increase in global volume.

Although growth came from all regions, the increases were far greater in emerging markets such as China, India and Russia. Bottled water volume grew 15 percent, while energy drinks volume rose 25, surpassing the volume gains in the company's namesake Coca-Cola soda, which increased 4 percent.

Coca-Cola, whose brands include Sprite and Minute Maid, also said that its cost-cutting program, which began in the January-March quarter, is on track. When completed, the measures are expected to save up to $650 million annually by 2015. The company is cutting costs in part to offset rising commodity costs, which food and drink makers industrywide have struggled with.

Coke has also put an emphasis on expanding in emerging markets.

For the quarter, total revenue was $11.14 billion, up 6 percent from $10.52 billion a year ago. Analysts expected revenue of $10.82 billion for the latest quarter.

Gross profit, which doesn't include selling and administrative costs, interest expense or income taxes, was $6.79 billion, up from $6.57 billion.

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Tuesday, 17 April 2012 08:07 AM
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