Coca-Cola quarterly profit falls 3%Tuesday 22 July 2014 14.00
Coca-Cola reported that second-quarter earnings dipped, as it notched strong volume growth in Asia but flat volumes in North America, Europe and Latin America.
Net earnings at the US beverage giant came in at $2.6 billion, down 3% from last year.
The year-over-year drop reflected in part a Venezuelan law capping profit margins.
"While I am pleased with our progress to date, we remain focused on the work required to return our business to the level of sustainable growth we and our share owners expect," chief executive Muhtar Kent said.
Worldwide volumes grew 3%, with an 8% jump in Asia Pacific due to strong results in China, India and other markets.
In North America, brand Coca-Cola volume grew 1%, but the gain was "tempered by softness in Diet Coke," the company said.
In Europe, growth in Northwest Europe, Germany and Iberia was offset by declines in Central and Southern Europe. Overall volume in the region was unchanged.
Volume was also flat in Latin America, where Coca-Cola's sponsorship of the FIFA World Cup in Brazil resulted in some marketing successes, even as these gains were offset by "aggressive competitive activity and a deteriorating macroeconomic environment," the company said.
Coca-Cola's results translated into adjusted earnings per share of 64 cents.
Revenues dipped 1.4% to $12.57 billion, under the $12.93 billion projected by analysts.
A Dow component, Coca-Cola dropped 1.7% to $41.70 in pre-market trade.