Shares of Coca-Cola Inc. edged down 1.6 percent lower to $45.85 in premarket trading on Wednesday. That affects Coke’s overall sales volume because emerging markets tend to be more weighted toward soda than non-carbonated drinks, he said.
Advertisement
Atlanta-headquartered company’s consolidated gross profit declined 5.97 percent to Dollars 6.21 billion during January-March quarter of 2016 as against USD 6.6 billion in the same quarter of previous year.
“We are confident that we have the right strategies in place to achieve our full-year outlook”, he said.
Chief executive Muhtar Kent said the company was well positioned to face a “challenging global macro environment”.
Noncarbonated drinks, which include tea, packaged water and sports drinks, continued to log strong growth at 7%, driven by solid volume across all key categories except for juice and juice drinks which declined slightly.
For the Asia Pacific region, the Coca-Cola Company and Subsidiaries had a net operating revenue of United States dollars 1.24 billion during the first quarter, down 3.89 percent as against USD 1.28 billion of Q1 2015.
The company is scheduled to announce its first quarter results on Wednesday and more sales numbers will be offered then.
Revenues fell 4.0 percent to $10.3 billion. Analysts polled by Thomson Reuters had forecast revenue of $10.27 billion.
This week, PepsiCo also reported a drop in quarterly sales, but strong demand for its snacks in North America helped the company post a better-than-expected profit. The top line was hurt by one less day compared with the prior-year period.
“When applied across packaging, retail, equipment and experiential, this new approach becomes a global design language that utilizes a historical brand icon to present the range of Coca-Cola products available today in a contemporary and simple way”, said Coke’s vice president of global design James Sommerville.
Consumers clearly associate Coke with its iconic red branding more than any other variant, and the packaging change is created to push market share.
Advertisement
The company also said bottlers in MS and Colorado would expand their operations and bottlers in Florida and Chicago would acquire a total of 10 production facilities.
