The decrease in volume is part of an ongoing downward trend in soda consumption, in the U.S. and around the world.
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Check back later for our full write up on this KO earnings report later!
What happened with Coca-Cola this quarter?
“As we continue the transformation of our business, I am encouraged by our core business performance which grew ahead of our consolidated organic revenues in the quarter”, said CEO Muhtar Kent in a statement. Apple forecast a 10% revenue decline for the current quarter, but firming demand trends give it positive momentum as it prepares to launch its next big iPhone upgrade.
The Coca-Cola Company is a beverage company.
The company also said that it suffered from foreign currency fluctuation and macroeconomic challenges in particular markets such as China and Argentina. Still beverage volume grew 4% year to date and 2% in the quarter. It also invested in Suja Life LLC, an organic-juice maker, in August, with an option to buy the balance of the company after three years.
The quarter wasn’t without a few bright spots. All this in hopes to improve operating performance. Per-capita soda consumption in the USA fell to a three-decade low in 2015, according to data from Beverage Digest, a trade publication. This is the lowest growth rate that the country has ever experienced. Though they lack rapid volume expansion potential, developed countries such as the USA and Japan lend themselves to higher pricing and premium margin opportunities.
Kent said that in global operations where external headwinds have proven to be more severe than originally forecast, the maker of Coca-Cola and Sprite is “taking action by reassessing local market initiatives where needed”. Global volume was flat, compared to a 2% uptick in Q1, as Coke endured weakening results across its portfolio.
Coca-Cola, PepsiCo Inc. and Dr Pepper Snapple Group have faced declining sales volumes as consumers turn to healthier alternatives. Coca-Cola has a 12-month low of $36.56 and a 12-month high of $47.13.
Comcast Corporation (CMCSA) gained 1.2% or 78 cents to $67.97 after the broadcasting services provider reported revenues in the in the second-quarter ending in June rose 2.8% from a year ago to $19.27 billion. Coca-Cola net surged 11% lifted revenue forecast.
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The Coca-Cola Company KO commands a strong market position due to its global reach, strong brand power, expanding worldwide presence, a solid global bottling network and an impressive cash position. The company implemented aggressive cost-cutting measures and several initiatives to drive growth during the year. Acquisitions, divestitures and structural items in the quarter primarily include the impact of refranchised territories in North America, the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners as well as the impact of the brand transfer agreement associated with the closing of the transaction with Monster Beverage Corporation (“Monster”) in 2015.
