Coca-Cola has had a weak second quarter of 2013. Sales came to 12.75 billion dollar, 3% less than in the same period of 2012. The company pointed to the weak economy in Europe and China, changing tastes, new regulations in the US and bad weather in India as possible reasons.
The world versus Coca-Cola
Coca-Cola was hoping to compensate local setbacks by being active on a global basis, but now it seems things are bad on all important markets. "This was a confluence of events”, said CEO Muhtar Kent.
In the US Coca-Cola is feeling the effects of the war on obesity. In New York for example, the size of cups containing sugary drinks is limited to 480 cl in bars, restaurants, movie theatres and sports facilities.
In Europe and China the economic circumstances are working against Coca-Cola. In Europe sales dropped by 4%, while in China sales rose 4%, but this was mainly because of the rise in sales of juices and waters. In India sales rose by only one percent, because the monsoon rains hit unusually soon and very fierce.
Sales and profits down
Globally the volume of sodas sold climbed by 1%. Sales however declined: partly because of fluctuations in the exchange rates, total sales were 3% lower than in the same period of 2012.
Net profits were also lower: in the second quarter they were at 2.67 billion dollar or 2 billion euro. That is 4% less than in the same period of 2102. Coca-Cola is expecting to perform considerably better in the next six months.