Coca-Cola Co’s sales dropped for 4 straight quarter as the demand sapped for the fizzy drinks in Europe & strong dollar ate into profits from the other markets outside US, including the Latin America.
On Wednesday, the shares of world’s largest beverage maker reduced 1.7% to 45.80 dollars in the premarket trading.
Coke & PepsiCo Inc have suffered, as the consumers gradually turn health-conscious. They are not cutting back on the fizzy drinks, while opting for fruit juices, teas and smoothies.
Rise in dollar also hit companies having a sizeable presence in the markets outside US, including Brazil & China.
Average value of dollar rose 2.6% in 1st quarter from 2015. The currency of the United States had risen 18% in first 3 months of the last year.
PepsiCo, this week reported a descent in its quarterly sales, but the strong demand for its snacks in the North America aided company to make a better profit.
The sales of Coca Cola in Europe, that is its 3rd biggest market, declined 1% in quarter ending on 1st April whereas a strong dollar & the weak demand in Brazil had reduced the Latin America sales by 12.2%.
The net income attributable to company’s shareholders also reduced 4.5% to 1.48 billion dollars, or thirty-four cents per share.
Excluding the items, Coca Cola had earned around 45 cents per share, while thumping the average analyst estimate by a cent.
Coca Cola that has a target of 3 billion dollars of the annual cost savings by 2019 had said that selling, the administrative and the general expenses have declined around 8%
The Net operating revenue had fell 4% to 10.28 billion dollar.
Nevertheless, the total organic revenue, excluding the impact of currency movements, divestitures, acquisitions & the currency movements rose 2%
The company had maintained this year’s forecast of 4-5% growth in the organic revenue & 4-6% growth in the earnings per share on constant-currency basis.