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VOL. 36 | NO. 41 | Friday, October 12, 2012
Coca-Cola's profit up as sales grow worldwide
NEW YORK (AP) — The Coca-Cola Co. says its net income rose 3 percent in the third quarter, as the world's biggest beverage maker expanded in in emerging markets and sold more of its sports drinks and teas at home.
The Atlanta-based company, which makes Sprite, Fanta, Minute Maid and Dasani water, says global sales volume rose 4 percent during the period. But the growth was more pronounced in emerging markets, where Coca-Cola has been looking to capitalize on the growing ranks of middle-class consumers.
In its flagship North American market, the company said sales volume rose by 2 percent. The increase was driven by what Coke refers to as "still beverages," such as Powerade, Gold Peak and Fuze teas. Its sparkling beverage unit, which includes its namesake soft drink, was flat from a year ago.
In India, by contrast, the company saw a 34 percent increase for its Coca-Cola brand and a 15 percent increase for Sprite. Overall sales volume in India was up 15 percent during the period.
CEO Muhtar Kent said in a statement that the company was able to "crack the calculus for growth" even in the tough economy.
"We have done this by consistently investing in our system and our brands to ensure that our global portfolio is more relevant and healthier today than it has ever been," Kent said.
The company says it earned $2.31 billion, or 50 cents per share, for the period ended Sept. 28. That compares with $2.22 billion, or 48 cents per share, in the year-ago quarter. Not including one-time items, the company says it earned 51 cents per share, in line with analyst expectations.
Revenue rose 1 percent to $12.34 billion, but fell shy of Wall Street expectations of $12.4 billion.
Shares of Coca-Cola were up 22 cents at $38.35 in premarket trading.