Coca-Cola profits up 8.1% as global sales volumes rise

COCA-COLA posted an 8.1% rise in third-quarter profit after boosting global sales volumes and raising retail pricing in North America.

Net income advanced to $2.22 billion (€1.6bn) from $2.06bn, a year earlier, the Atlanta-based company said in a statement.

Excluding some items, profit was $1.03 a share, topping the $1.02 average of 13 analysts’ estimates compiled by Bloomberg.

Coca-Cola employs 1,100 across Ireland.

Chief executive Muhtar Kent has built new plants in emerging markets and pushed more profitable package sizes overseas, helping boost global case volume sales 5% in the quarter.

“They are still growing in terms of volume, and that’s what you want to see,” Chris Shanahan, a San Antonio-based analyst, & said yesterday. “They are able to maintain organic growth.”

Third-quarter revenue rose 45% to $12.2bn, helped by the company’s purchase of its largest bottler last year. The average estimate of 10 analysts was $12bn.

Sales volumes gained 7% in Latin America, 6% in the company’s Eurasia and Africa region and 5% in North American and its Pacific units.

Coca-Cola said yesterday it plans to buy back as much as $3bn of its shares this year, up from its previous target of at least $2.5bn. The company said yesterday it has repurchased $2.2bn shares so far this year.

Chief financial officer Gary Fayard said the company’s commodity costs will jump $800 million this year from 2010, more than the $700m estimated.

The increase is driven by higher costs for corn syrup used as a sweetener and petroleum-based plastic for bottles and packaging.

Coca-Cola said in July it would boost North American pricing as much as 4% in the second half of the year to offset higher commodity costs.