Drinks manufacturer Coca-Cola managed to beat analysts’ expectations, despite its third quarter turnover dropping 15 %. In contrast, like-for-like turnover and net profit grew, because of price increases and cost reductions.
Higher profit
Coca-Cola’s third quarter turnover reached 9.1 billion dollars (7.7 billion euro), but analysts had expected a 8.72 billion dollar (7.4 billion euro) turnover. Like-for-like turnover grew 4 %: three quarters came through price increases and one percent was through increased volumes. “I feel emboldened by our progress and third quarter results”, CEO James Quincey said. “Our performances indicate the strength of an organization focused to perform in line with our financial obligations and as it executes substantial structural and cultural changes.”
The company’s net profit also grew compared to last year, from 1.05 billion dollars (890 million euro) to 1.45 billion dollars (1.23 billion euro). A sizeable cost reduction, like how it now outsources its bottling activities, was the main reason for the profit increase.
Coca-Cola also stresses its focus on innovation to counter the lower sugary drinks sales. Coca-Cola Zero’s volume doubled compared to last year, although that is also partially because it was launched in the United States in August.
