Stocks are fizzing in Coca Cola after better than expected results
Stocks in Coca-Cola are up more than one per cent after it reported strong profits in its latest quarterly results.
Growth was driven by strong results in North America and higher prices for drinks, but expects taxes to be impacted next quarter by structural and currency headwinds.
The figures
The soft drinks giant reported revenue of $10.6bn, $90m higher than estimates, and a third quarter profit of $1.05bn.
Earnings, adjusted for non-recurring costs, were 49 cents per share, slightly above what experts predicted.
Read more: Coca-Cola ditches Coke Zero
Quarterly organic revenues grew three per cent, Coca-Cola said, but it expects the next quarter's results to be impacted by an 11 per cent head wind from acquisitions, divestitures and structural items.
Full year revenue results are unchanged.
Why it's interesting
Coca Cola have introduced more than 500 new products across the world this year – including a new version of Cola-Cola Zero in the UK. Sugar-free food and drinks have had a new lease of life after George Osborne announced a sugar tax in the budget earlier this year.
Volumes of noncarbonated drinks, which include tea, juices and energy drinks, grew 2 percent in the North America region.
In pre-market trading, shares in Coca Cola were up by 1.79 per cent.
The company also said it was on track to deliver more than $600m of productivity in 2016 by scaling initiatives and embedding zero-based work into its daily operations.
Cola-Cola is also making strides in sustainable business practises, announcing it met its goal to replenish the amount of water used in global sales back into the environment.
What the company said:
Muhtar Kent, Chairman and CEO of The Coca-Cola Company, said results were in line with expectations:
We continued to see solid revenue results in our developed markets with two per cent unit case volume growth and a continued focus on price realization. The United States, Japan and Western Europe delivered standout performance underpinned by innovation and world-class marketing. Globally, we gained nonalcoholic ready-to-drink value share for the 37th consecutive quarter and are on track to deliver our financial commitments for the full year.