Coca-Cola profits up by 8%

COCA-COLA, the world’s largest soft-drink maker, boosted third-quarter profit by 8.4% after winning more customers overseas and increasing North American sales volume for the second quarter in a row.

Net income advanced to €1.50 billion ($2.06bn), or 88 cents a share, the Atlanta-based company said yesterday. Excluding some items, profit was 92 cents, compared with the 89-cent average of estimates compiled by Bloomberg. The company also said it may repurchase $2 billion of its shares this year, up from the $1.5 billion announced previously.

Volumes in the Eurasia and Africa group grew 12%, making it the fastest-growing unit, as Coca-Cola launched new drinks in India and Russia.

Coca-Cola, led by chief executive Muhtar Kent, also boosted North American sales volumes by 2%, the second such increase since 2007. North American volume dropped 2% last year.

“The stabilisation in North America is a sign consumers are willing to make impulse purchases of soft drinks again,” said Philip Gorham, a senior equity analyst for Morningstar Inc. in Chicago. “It shows the environment is beginning to thaw.” He rates the shares as “fairly valued”.

The shares rose 34 cents to $60.34 at 4pm in New York. That compared with a 1% drop in the Standard & Poor’s 500 Consumer Staples Index.