Coca-Cola profits up 37% after healthy sales growth

COCA-COLA, the world’s largest soft-drink company, reported a 37% jump in third-quarter profits on healthy sales growth in China, Mexico and other international markets yesterday, sending its shares up 2%.

The company, which has rolled out a flurry of new products this year, said it kept its share of the worldwide soft-drink market and gained on rivals in the sports beverage, juice and juice drink categories.

Reigniting sales of Coca-Cola Classic and other core soft drinks has been a top priority since the Atlanta-based company began a sweeping restructuring more than five years ago.

Analysts have said a key to Coca-Cola’s future is capturing more consumers who have moved away from sugary soft drinks to diet versions or to healthier low or no-calorie beverages such as water and orange juices with reduced sugar.

In the quarter, earnings rose to $1.28 billion (€1.07bn) from $935m (€780m) a year earlier.

Chief executive Neville Isdell said the results are a sign the company was making headway in pulling out of a prolonged slump and return to a period of sustainable long-term growth.

But he cautioned that significant challenges remain, especially in Germany and several other markets.

Sales by volume were up 5%, spurred by 6% growth in international markets. Volumes were up 23% in China and 4% in Mexico.

In North America, which accounts for 30% of total revenues, sales rose 3%.

Offsetting that good news was a disappointing 5% sales drop in East Asia, South Asia and the Pacific Rim. India was a particularly sore spot.

Sales there fell 22%.