Coca-Cola more than triples profit in fourth quarter

COCA-COLA Co, the world’s largest soft-drink maker, says fourth-quarter profit more than tripled after a one-time non-cash gain related to the acquisition of its north American bottling operations.

Net income advanced to $5.77 billion (€4.26bn), or $2.46 a share, the Atlanta-based company said. Excluding some items, profit was 72 cents, matching the average of estimates compiled by Bloomberg.

Coca-Cola, led by chief executive Muhtar Kent, now controls 90% of its north America beverage distribution following a deal last year with its largest bottler. The company boosted volume sales in the US and Canada by 8% for the quarter, the third consecutive quarterly increase.

The shares had fallen 4.4% this year before the announcement, compared with a 1.8% slide for rival PepsiCo Inc.

Global sales by drink volume grew 6%, helped by a 5% gain in Latin America and a 2% increase in Europe. Volume in the Eurasia and Africa unit jumped 14%.

Coca-Cola recorded a$5 billion one-time, non-cash gain for the 33% stake in Coca-Cola Enterprises Inc it traded in the purchase of the bottler’s North American operations.

Sales rose 40% to $10.5 billion, helped by the new distribution. Analysts on average estimated $10.2 billion, according to a Bloomberg survey. Netincome in the fourth quarter of 2009 was $1.54 billion, or 66 cents a share.

Purchase, New York-based PepsiCo, the second-biggest soft- drink company, is scheduled to report earnings tomorrow.

China is important in Mr Kent’s strategy of doubling revenues for Coke to about $200bn by 2010, and plans including increasing the number of bottling plants by 100% in the country and tripling sales.

The company opened three new bottling plants in China in its most recent quarter, including a $17m centre in Hohot. Mr Kent said Coca Cola plans to expand its distribution network this year to reach parts of the country previously not looked at.