NEW YORK: Beverage maker The Coca-Cola Co. reported a 7 per cent increase in its second quarter profits Tuesday while sales rose by a modest margin.
The Atlanta-based company said earnings stood at $1.84 billion for the three months ended June 30, compared to $1.72 billion in the corresponding previous year quarter.
Revenue during the quarter increased by 3 per cent to $6.48 billion, compared to $6.31 billion in the same period a year ago.
Chief executive Neville Isdell said in a statement announcing the results that through effective execution of the company’s strategy and investments in key marketing initiatives such as the World Cup, the company delivered 4 per cent unit case volume growth — 3 per cent in carbonated beverages and 5 per cent in non-carbonated beverages.
The company had strong performance in Brazil, China and Russia, and its growth in emerging markets, especially Latin America, too had been strong, added Isdell. Results were weaker in India, the Philippines and Germany.
The company’s carbonated beverage unit case volume growth was even with last year, as introduction of Vault and Black Cherry Vanilla Coca-Cola helped it to sustain the market. Non-carbonated volume grew by 7 per cent, on account of Dasani and Powerade brands.
Total juice unit case volume was flat during the quarter, while warehouse-delivered juice unit case volume was affected by price increases on Minute Maid. However, the decline was offset by continued unit case volume growth in Simply and Odwalla juices, the company said.
For the first six months of the year, the company said it earned $2.94 billion, which is an 8 per cent increase from the $2.73 billion recorded in the first half of last year. Revenue during the six-month period rose 2 per cent to $11.70 billion from $11.52 billion a year ago.
The company repurchased $666 million worth of its stock in the second quarter. It said in intends to repurchase $2 billion to $2.5 billion worth of stock for the full year.
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