Coca-Cola Q2 Profit Rises, Beats Estimates

(RTTNews) - Beverages giant Coca-Cola Co. (KO) Wednesday said its second-quarter profit increased from the previous year, even as revenues dropped amid adverse currency. Adjusted earnings topped Wall Street estimates.

Attributable net income climbed 20 percent to $3.108 billion from $2.595 billion in the previous year. Earnings per share grew to $0.71 from $0.58.

The latest results included a net gain recognized in connection with the closing of the transaction with Monster Beverage Corp., partially offset by costs associated with the productivity program.

Comparable earnings per share were $0.63, while it totaled $0.64 last year. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Fluctuations in foreign currency exchange rates led to a 6 point headwind on both comparable earnings per share in the quarter.

Net operating revenues slipped to $12.156 billion from $12.574 billion in the prior year. Analysts expected revenues of $12.06 billion.

While reported net revenue declined 3 percent, organic revenue grew 4 percent.

In Eurasia & Africa, net revenues dropped 10 percent, while Europe reported a 9 percent decline. Latin America saw a 13 percent decline in reported revenue.

Global volume grew 2 percent from last year. Global sparkling beverage volume growth of 1 percent was led by 1 percent growth in brand Coca-Cola, 6 percent increase in Coca-Cola Zero, 3 percent growth in Sprite and 2 percent growth in Fanta. Growth in these brands was partially offset by a 7 percent decline in Diet Coke.

Still beverages volume grew 5 percent, reflecting a 7 percent growth in ready-to-drink tea, 8 percent growth in packaged water and double-digit growth in value-added dairy.

Muhtar Kent, chairman and CEO, said, "Our second quarter results were in line with our expectations and mark continued progress toward restoring momentum in our global business."

For the full year, the company's comparable currency neutral growth expectations remain unchanged.

In April, the company had said that it expects full-year comparable currency neutral earnings per share growth in mid-single digits, roughly in line with its growth rate in 2014.

The firm estimates that the net impact of structural items on full-year results will be a 1 point headwind on both net revenues and income before taxes.

The company targets full-year net share repurchases of $2.0 billion to $2.5 billion.

Last week, PepsiCo, Inc. (PEP) said its second-quarter profit remained unchanged from last year, even as revenues declined owing to adverse currency impact. Both adjusted earnings and revenues topped expectations. Further, the company boosted its earnings forecast for the year.

KO closed down 0.5 percent on Tuesday at $41.19, and rose about 1 percent in pre-market activity.