Even with Lower Sales, Coca-Cola’s Profit Increases
In the quarter that ended on July 3, Coca Cola Company's earnings increased nineteen percent with 71 cents per share or to $3.1 billion compared to same quarter last year's $2.6 billion. All this happened even with a three percent drop in the company's sales. Sales slid from$12.6 billion to $12.2 billion from last year.
If it was not for the strong dollar, the results of the company would have been even better on paper.
Coca-Cola's chief executive Muhtar Kent said, "Our second-quarter results were in line with our expectations and mark continued progress toward restoring momentum in our global business."
The Atlanta based company said it has gained from the new packages and successful advertising and marketing campaigns. Particularly, the Share a Coke program, of the company which permits the consumers to tailor the labels on Coke bottles benefitted in sales.
In the quarter, the sales figure of noncarbonated beverages like teas grew along with the sale of bottled waters, which increased eight percent. However, these bottle drinks do not fetch profits like what the company terms as "sparkling" drinks.
For the quarter, the sale of Diet Coke dropped seven percent in the quarter.
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