Saturday 10 December 2016

Cost cuts help Coca-Cola beat profit expectations

Published 09/02/2016 | 12:41

Coca Cola’s naming theme
Coca Cola’s naming theme

Coca-Cola Co (KO.N) reported a better-than-expected quarterly profit, helped mainly by aggressive cost-cutting.

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Coca-Cola is also trying to boost sales by raising prices and diversifying into beverages such as cold-pressed juices and energy drinks.

Net operating revenue fell 8 percent, the third straight quarterly drop. Excluding the impact of acquisitions, divestitures and foreign currency, sales declined 1 percent.

However, net income attributable to shareholders jumped 60.6 percent to $1.24 billion, or 28 cents per share, in the fourth quarter ended Dec. 31.

Selling, general and administrative expenses fell 9.2 percent to $3.94 billion.

Excluding items, the company earned 38 cents per share.

Analysts on average had expected earnings of 37 cents per share and revenue of $9.91 billion, according to Thomson Reuters I/B/E/S.

Reuters

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