Emerging markets boost Coca-Cola earnings in quarter

by FoodBusinessNews.net Staff
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ATLANTA — Net income for The Coca-Cola Co. rose 43% to $2,323 million, equal to 88c per share on the common stock, during the second quarter ended July 3. This compared with net income of $1,422 million, or 61c per share, in the second quarter of fiscal 2008.

Sales for the three-week period were $8,267 million, a 9% decline compared with the second quarter of fiscal 2008.

Overall unit case volume increased 4% during the second quarter. Internationally, The Coca-Cola Co. experienced unit case volume gains of 33% in India and 14% in China as well as smaller gains in Japan, Brazil, Mexico, Argentina, Thailand, South Korea and Northern Europe. In North America, unit case volume declined 1% during the quarter.

"We continue to deliver solid operating performance," said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co. "In the first half of the year, we delivered volume and profit results in line with our long-term growth targets, despite very challenging global economic conditions.

"We outperformed the nonalcoholic ready-to-drink industry in most of our key markets and drove further global volume and value share gains. Our consistent strategies are working, and together with our productivity efforts, we are prudently focused on investing in the long-term growth of our resilient business. Our investments in key growth markets contributed to the good performance in China, Mexico, India and Brazil. And, with our disciplined approach to productivity initiatives, we remain on track to achieve our $500 million target in annualized savings by 2011 and expect to deliver more than half of the savings by the end of this year."

Company-wide operating income declined 9%, to $2,438 million, during the second quarter when compared with the same period during 2008. The decline was primarily due to the strength of the U.S. dollar. From a currency-neutral perspective, the company’s operating income increased 4% during the quarter when compared with the second quarter of 2008.

For the first six months of fiscal 2009, The Coca-Cola Co. recorded net income of $3,385 million, or $1.46 per share, compared with net income of $2,922 million, or $1.24 per share, during the first six months of 2008.

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