Coca-Cola profit beats estimates on Asia, LatAm
Thursday, 18 October 2007
BEIJING, Oct 17 (Bloomberg): Coca-Cola Co., the world's largest soft-drink maker, said third-quarter profit rose more than analysts anticipated on gains in Asia and Latin America.
Net income increased 13 per cent to $1.65 billion, or 71 cents a share, from $1.46 billion, or 62 cents, a year earlier. Sales jumped 19 per cent to $7.69 billion, the Atlanta-based company said today in a statement on Business Wire. Earnings beat the average estimates of analysts by 3 cents a share.
Coca-Cola marketed Georgia coffee and no-calorie Coca-Cola Zero soda to lift sales in Japan, where it gets 20 per cent of profit. Chief Executive Officer Neville Isdell boosted promotions in China and Brazil, and touted Vitaminwater to win customers from PepsiCo Inc. in the US as soda volume fell.
"Coke is showing continued improvement in Japan and Europe, and focusing on markets where the real growth is," said Jason Pride, director of research at Haverford Investments. The Radnor, Pennsylvania-based firm manages $6 billion including Coca-Cola shares.
Coca-Cola rose 12 cents to $57.76 yesterday in New York Stock Exchange composite trading. The shares have climbed 20 per cent this year, outpacing a 15 per cent gain by PepsiCo.
Twelve analysts surveyed by Bloomberg estimated average profit of 68 cents a share, excluding 3 cents of costs and 3 cents of gains from the sale of a unit. Eight analysts projected sales of $7.29 billion.
Coca-Cola promoted canned coffee, Fanta soda and bottled teas to attract Japanese drinkers. The company also introduced no-calorie Coca-Cola Zero soda.
Japan shipments fell last year after a Georgia coffee advertising campaign aimed at young consumers alienated its core middle-aged drinkers.
Net income increased 13 per cent to $1.65 billion, or 71 cents a share, from $1.46 billion, or 62 cents, a year earlier. Sales jumped 19 per cent to $7.69 billion, the Atlanta-based company said today in a statement on Business Wire. Earnings beat the average estimates of analysts by 3 cents a share.
Coca-Cola marketed Georgia coffee and no-calorie Coca-Cola Zero soda to lift sales in Japan, where it gets 20 per cent of profit. Chief Executive Officer Neville Isdell boosted promotions in China and Brazil, and touted Vitaminwater to win customers from PepsiCo Inc. in the US as soda volume fell.
"Coke is showing continued improvement in Japan and Europe, and focusing on markets where the real growth is," said Jason Pride, director of research at Haverford Investments. The Radnor, Pennsylvania-based firm manages $6 billion including Coca-Cola shares.
Coca-Cola rose 12 cents to $57.76 yesterday in New York Stock Exchange composite trading. The shares have climbed 20 per cent this year, outpacing a 15 per cent gain by PepsiCo.
Twelve analysts surveyed by Bloomberg estimated average profit of 68 cents a share, excluding 3 cents of costs and 3 cents of gains from the sale of a unit. Eight analysts projected sales of $7.29 billion.
Coca-Cola promoted canned coffee, Fanta soda and bottled teas to attract Japanese drinkers. The company also introduced no-calorie Coca-Cola Zero soda.
Japan shipments fell last year after a Georgia coffee advertising campaign aimed at young consumers alienated its core middle-aged drinkers.