American soft drink giant Coca-Cola has surprised everyone with better-than-expected financial results, thanks to increased North American sales in the fourth quarter.
North American turnover represents about half of the company's total sales, which means that the good performance in its home market spells good news for Coca-Cola. The previous three quarters represented a status quo at best, but Coca-Cola managed a 2 % turnover increase in its fourth quarter, reaching 5.37 billion dollars (over 5 billion euro). The main reason for the turnover increase was that it had implemented a 4 % price increase.
The company's total turnover dropped 1.5 % to 10.9 billion dollars (9.6 billion euro), which is still better than what analysts had expected. Its profit, at 44 cent per share, was also higher than the anticipated 42 cent per share.
CEO Muhtar Kent's efforts to curtail costs and sell more in the higher echelons of the market are paying off. In total, he wants to cut 3 billion dollars (2.65 billion euro) in yearly costs, to offset its slower growth.