Coca-Cola Co reported a higher-than-expected quarterly profit on Tuesday, as rising consumption of its beverages in emerging markets offset declines in Europe, sending its shares up more than 1 per cent in premarket trading.
The world's largest soft drink company, maker of Sprite, Minute Maid orange juice and vitamin water, said second-quarter sales volume rose 4 per cent, with North America growing 1 per cent and international up 5 per cent.
Volume jumped 12 per cent in Eurasia and Africa, 8 per cent in the Pacific region and 3 per cent in Latin America. It fell 4 per cent in Europe, hurt by the economic slowdown there.
Net income was $2.79 billion, down from $2.80 billion a year earlier. Net earnings per share rose to $1.21 from $1.20 because of fewer shares outstanding.
Excluding items, earnings were $1.22 per share, topping analysts' average estimate of $1.19, according to Thomson Reuters I/B/E/S.
Revenue rose about 3 per cent to $13.09 billion. Analysts had expected $12.98 billion.
The company, which does business in more than 200 countries, said foreign exchange rates shaved 4 percentage points from net revenue.
Price increases also helped boost revenues.
Costs rose 5 percent in the quarter, due to “moderately” higher commodity costs.
Coke shares rose 1.3 percent to $77.45 in trading before the market opened.
Copyright @ Thomson Reuters 2012
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