Coca-Cola profits beat predictions

By staff reporter

- Last updated on GMT

Related tags: Coca-cola, The coca-cola company

Coca-Cola beat several predictions with a seven per cent profit
rise in the second quarter of 2006, as improved performances in
Europe and Latin America offset difficulties in Japan.

Coca-Cola said sales rose three per cent in the three months up to 30 June, to $6.47bn (€5.2bn).

The results helped Coca-Cola to beat forecasts from analysts, who were concerned the group's troubles in Japan could blight its performance.

There were problems in Japan, where a six per cent drop in volumes managed to overshadow gains in the emerging markets of Russia and China in Coke's North Asia, Eurasia and Middle East division.

The soft drinks firm was also hit by double-digit volume declines in India and the Philippines.

But, a resurgence of Coca-Cola branded drinks in both the UK and Germany, partially lifted by the recent football world cup, gave Coke an unexpected boost in Europe.

And an 18 per cent sales rise in Latin America, as well as continued double-digit growth for Dasani water and the Powerade sports drink in North America, ensured Coca-Cola came out ok.

The performance so far this year, with sales up two per cent and profits up eight per cent, appeared to back up claims from Neville Isdell, Coca-Cola's chief executive, that the firm is steadily improving after several years lying stagnant.

Isdell said he "remained excited"​ about 2006 and that Coca-Cola would look to launch more successful products in key markets. It recently launched Coca-Cola Zero in the UK, Germany, Spain and Belgium.

There was no word on coffee-cola drink Coca-Cola Blak, however. The brand was launched in France at the start of the year amid a widespread marketing campaign.

The group said initial results were encouraging, although several consumers told BeverageDaily.com​ they were unsure the drink would work over the long-term.

Related topics: Carlsberg

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