Coca Cola Blames Bad Weather For Weak Quarter
Published on Jul 16 2013 3:59 PM in Drinks
Coca Cola, the world's largest beverage company, has blamed its second-quarter 4% fall in profits on bad weather in Europe and the US, along with slowing economic growth in China.
Net income for the three months ended 28 June fell by 4% to $2.68 billion, or 59 cents per share, which was down 4% from $2.79 billion, or 61 cents per share, a year earlier.
The drinks giant reported 1% global volume growth in the second quarter, slowing from 4% in the first quarter. Reported net revenues declined by 3% to $12.75 billion in the second quarter, while reported operating income declined by 2%.
North American volumes dropped by 1%, owing to the unusually wet and windy weather in the US, according to the company. Likewise, European volumes fell by 4% due to poor weather, with floods and a cold spring impacting on demand across the continent.
Volumes in India rose by just 1%, as monsoon rains arrived early, washing out roads and reversing growth gains made in the same period a year earlier, when the monsoon arrived late.
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney