Coca-Cola Sees 8% Q1 Profit Gain
Coca-Cola's net income gained 8% in its fiscal Q1, driven by 5% global volume growth.
Earnings were $2.07 billion, or 89 cents a share; analysts expected 87 cents per share. The profit growth was realized despite a 10% increase in input costs, according to the company.
Net operating revenue grew 6%, to $11.1 billion.
Volume grew in all geographic divisions. The largest gains were in India (20%) and China (9%), but volume also increased in developed markets, including North America (2%), Japan (3%) and Germany (3%). International volume grew 6%.
Globlly, sparkling beverages volume grew 4% and still beverages volume grew 9%.
The flagship Coca-Cola brand's volume grew 4% globally and 1% in the U.S./North America, with N.A. performance driven by marketing around the Super Bowl and "American Idol," as well as the final phase of its Arctic Home program. Fanta's N.A. volume was up 4%. (Both Fanta and Sprite saw volume gains of 4% globally.)
N.A. still beverages volume grew 6%, including volume and share gains by juices and juice drinks, sports drinks, energy drinks and ready-to-drink eam.
The N.A. still-beverages volume growth was led by Powerade (13%), driven by its new “Power Through” campaign and NCAA March Madness activations. Dasani water in PlantBottle packaging, Gold Peak tea, Vitaminwater Zero and Smartwater also saw double-digit N.A. growth.