Coca-Cola Profits hit US$3.1bln in H2

Big 5

US drinks giant Coca-Cola has reported a rise in profit after raising prices in North America.

Earnings rose 20% to $3.1bn (£2bn) in the second quarter, compared to a year ago, with the price rise offsetting the effect of a stronger dollar, which eats into overseas revenue.

The world’s largest beverage maker gets more than 40% of its sales from international markets.

Total revenue fell more than 3% to $12.16bn in the three months to 3 July.

“Our second quarter results were in line with our expectations and mark continued progress toward restoring momentum in our global business,” said chief executive Muhtar Kent in a statement on Wednesday.

However, he warned that fluctuations in exchange rates would continue to have an “unfavourable” effect on its results this year.

The US dollar has risen more than 8% against a basket of major currencies so far this year.

The Coca-Cola Zero brand saw growth of 6% in the quarter, compared with 1% for the Coca-Cola brand, 3% for Sprite and 2% for Fanta.

“Growth in these brands was partially offset by a 7% decline in Diet Coke,” the company said.

The drinks maker has been struggling to grow as health conscious consumers continue to turn away from carbonated soft drinks.

Source: BBC