Coca-Cola experiences double digit sales
the quarter ending 29 June, led by strong performances in emerging
However margins were down to 29 per cent from 31 per cent over the same period the previous year, and cost of goods increased 30 per cent. Neville Isdell, Coca-Cola's chairman and chief executive officer, said "an overall favourable global environment has assisted our concerted and successful actions in the market place." Coca-Cola attributed the increases in revenues to a 7 per cent rise in concentrate sales, acquisitions of certain bottlers, and a 3 per cent increase due to currency exchange rates and rises in the cost of commodities and freight. In the US, the company experienced a slight fall in shipment volume. Revenues from carbonated drinks fell 3 per cent, which the company attributed to the "difficult sparkling beverage industry". However net revenues from US operations increased 9 per cent, a result the company said of raising its prices. Increased sales of energy drinks and the Powerade brand also lifted sales, the company said. Muhtar Kent, Coca-Cola's president and chief operating officer, said that the company is committed to "restoring growth in our flagship market of North America". The company is reorganising activities in the country. It recently announced the $4.1bn acquisition of Glaceau, a US company specialising in "enhanced" water drinks, and will refocus resources behind the more profitable Dasani business. Meanwhile, the company is focusing on diversifying its sales into foreign markets outside of its traditional bases. "Our results continue to be led by our international operations, which once again delivered 9 per cent unit case volume growth," Kent said. In Europe, sales revenues increased 15 per cent, while operating income rose 21 per cent. The company attributed the gains to increased investment in marketing campaigns. Coca-Cola Zero and Apollinaris, a recently acquired water brand, were particularly successful in the region, the company reported. In emerging markets the company said sales grew by double-digits in China, Turkey, India, Brazil, South Africa, Eastern Europe and southern Eurasia. In Latin America, net revenues increased 25 per cent in the second quarter, and 22 per cent over the year, whereas in Eurasia net revenues for the quarter grew 17 per cent.