NEW YORK, July 22 — Coca-Cola Co, the world’s largest beverage company, reported second-quarter sales that missed analysts’ estimates amid sluggish demand for drinks such as juice and Diet Coke in North America.
Revenue fell 1.4 per cent to US$12.6 billion (RM40 billion) in the period, Atlanta-based Coca-Cola said today in a statement. Analysts had estimated US$12.8 billion on average, according to data compiled by Bloomberg.
Chief Executive Officer Muhtar Kent is cutting costs and overhauling marketing as he contends with a slowdown in the market for fizzy beverages. Coca-Cola also is increasingly relying on overseas markets to maintain growth.
“Fundamentals remain somewhat soft” for the carbonated soft-drink category, Bonnie Herzog, an analyst with Wells Fargo & Co in New York, said in a note last week.
Coca-Cola shares were little changed in yesterday’s trading, closing at US$42.40 in New York. The shares have risen 2.6 per cent this year, compared with a 6.8 per cent gain for the Standard & Poor’s 500 Index.
“We remain focused on the work required to return our business to the level of sustainable growth we and our shareowners expect,” Kent said in the statement.
Net income fell 3 per cent to US$2.6 billion, or 58 cents a share, from US$2.68 billion, or 59 cents, a year earlier, Excluding some items, profit was 64 cents a share, compared with a 63-cent average of 19 analysts’ estimates compiled by Bloomberg.— Bloomberg
