New Coca-Cola CEO James Quincey delivers strong results
By Sruthi Ramakrishnan - Jul 28th 2017, 11:22
Coca-Cola’s profit, in its first quarter under new CEO James Quincey, beat analysts’ estimates on higher demand for its healthier non-carbonated beverages as well as low- and no-sugar versions of its sodas.
Coca-Cola, like rival PepsiCo, has been building its non-carbonated drinks portfolio and stepping up efforts to reduce sugar in its beverages as consumers look for healthier options.
"Organic revenue growth in sparkling soft drinks was led by innovation in and marketing support for our low- and no-sugar options like Coca-Cola Zero Sugar," Quincey said in a statement.
Global volume sales of low- and no-calorie soda drinks rose in the mid-single digits in the second quarter ended June 30, the company said on Wednesday.
The world’s largest beverages maker said it plans to introduce Coke Zero Sugar in the US in August.
Coca-Cola said demand rose for its non-aerated drinks such as innocent juice and smoothies in Europe.
The company is delivering on its strategic priorities — growing soda sales by reducing sugar content, broadening beverage portfolio and using higher prices as a driver of profit, Susquehanna analyst Pablo Zuanic wrote in a note.
The change in strategy is paying off for PepsiCo as well.
Growing demand for higher-margin healthier foods such as baked chips and smaller soda servings helped its profit beat analysts’ estimate this month.
Net income attributable to Coca-Cola’s shareholders fell to $1.37bn, or 32c per share, in the second quarter ended June 30, from $3.45bn, or 79c per share, a year earlier.
Coca-Cola incurred a charge of $653m related to refranchising its North America bottling operations, as the company continues to sell most of its low-margin bottling business to cut costs.
Excluding items, Coca-Cola earned 59c per share, beating the average analysts’ estimate of 57c, according to Thomson Reuters IBES.
Revenue fell 16% to $9.7bn, hurt by the refranchising of bottling territories and a strong dollar.
However, revenue beat the average analysts’ estimate of $9.65bn.
The company also forecast adjusted 2017 profit to be flat or down 2%, compared with its previous forecast of a 1%-3% decline, citing lower impact from currency exchange rates. © BusinessLIVE MMXVII
Multi-million rand Rustenburg Mall underway
09/09/2019 - 11:07
Rustenburg shoppers can look forward to a brand new shopping centre – Rustenburg Mall – set to introduce its first phase in April 2021.
Introducing the Cape Fine and Rare Wine Auction
23/08/2019 - 10:07
With the world market increasingly focused on the fine and rare wines from South Africa, the Cape Winelands is in a stronger position than ever to showcase its fine wine investments. This year, the Cape Winelands is proud to host its first-ever Cape Fine & Rare Wine Auction, an evolution of the historic Nederburg Auction in 1975.
Boost for SA's economy as China lifts its beef ban
07/08/2019 - 09:10
Within one month of the meeting between President Cyril Ramaphosa and President Xi Jinping at the G20, China has announced that it is lifting the ban on South African beef exports to China. This will be a major boost to South Africa’s economy given that China is the largest consuming market for South African beef and related products.
South Africa’s economy ‘doesn’t have a long time’
02/08/2019 - 12:57
South Africa’s outlook has been dealt several heavy blows following Eskom’s financial results, and the latest unemployment data, which has raised the question: where to from here?
Inducing consumer paralysis: how retailers bury customers in an avalanche of choice
01/07/2019 - 10:35
Do you think you are paying more than you should for energy, banking, insurance, internet, and phone services? You are not alone, and you are probably right.