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Coca-Cola reported lower profit during the first quarter revenue, but volumes gained slightly during the January-March quarter. The better than expected results were backed by robust growth in China followed by India, while sales in Europe dropped and North America stayed flat.
Revenue dropped to $10.58 billion for the quarter, a 4 per cent drop from $11.03 billion during the corresponding quarter last year. The company reported $1.62 billion profit for the January-March period, 8 per cent down from $1.75 billion for the same period last year.
The company said its global case volume rose 2 per cent during the quarter, backed by a 12 per cent growth in volume in China due to increased marketing around the Chinese New Year. Volumes in India and Russia grew 6 per cent each during the January-March quarter. Volume in Asia Pacific Group increased 7 per cent.
"Our North America Group delivered even volume versus the prior year quarter while gaining value share and maintaining volume share," the company said in a statement. North America is the biggest market for Coca-Cola. Sales in Europe dipped 4 per cent.
"Our growth momentum is steadily improving in line with our expectations," Coke CEO Muhtar Kent said in a statement issued with the financial results.
Its still beverage volume grew 8 per cent worldwide for the quarter, with volume growth across multiple beverage categories, including juices and juice drinks, ready-to-drink teas, packaged water, sports drinks and energy drinks. We gained global volume and value share in total still beverages, including juices and juice drinks, ready-to-drink teas, packaged water and sports drinks, Coca-Cola said in its earnings statement.
Coca-Cola's Bottling Investments Group grew volume 5 per cent in the quarter on a comparable basis, led by China and India, after adjusting for the net impact of structural changes, primarily the deconsolidation of the Philippine and Brazilian bottling operations in 2013, the company said in a statement.
