Bottles of Coca-Cola are pictured in a cooler during a news conference in Paris, France, April 20, 2017. REUTERS/Benoit Tessier
BENGALURU: Coca-Cola Co reported a smaller-than-expected quarterly profit due to higher costs related to refranchising its North America bottling operations.
The company is offloading much of its low-margin bottling business to cut costs amid falling demand for carbonated beverages in North America.
Coca-Cola had warned in February that the refranchising was turning out to be costlier than previously anticipated.
Global soda sales fell 1% in the first quarter ended March 31, the company said on Tuesday.
Net income attributable to the company’s shareholders fell to US$1.18bil (RM5.16bil), or 27 cents per share, from US$1.48bil (RM6.47bil), or 34 cents per share, a year earlier.
Excluding items, the company earned 43 cents per share.
Revenue fell 11.3% to US$9.12bil (RM39.85bil), declining for the eighth straight quarter.
Analysts on average had expected earnings of 44 cents per share and revenue of US$8.87bil (RM38.76bil), according to Thomson Reuters I/B/E/S. - Reuters
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
