Coke earnings fall on exchange rates

FEBRUARY 11, 2015
AAP
COCA-COLA’S profit fell in the fourth quarter, hurt by unfavourable currency exchange rates and expenses related with its cost-cutting plan.
THE world’s biggest beverage maker said it earned $US770 million ($A985 million), or 17 cents per share, in the period ending December 31.
Excluding one-time costs, it earned 44 cents per share, topping the 42 cents per share analysts expected, according to Zacks Investment Research.
A year ago, the company earned $US1.71 billion, or 38 cents per share.
Total revenue slipped to $US10.87 billion, but beat Wall Street expectations of $US10.77 billion.
Shares of Coca-Cola rose three per cent in premarket trading.
Coca-Cola has been struggling to boost global sales volume amid economic volatility overseas and a shift away from soda back at home.
For 2014, the company said global sales volume rose two per cent, including a one per cent boost in carbonated soft drinks.
That was in line with its disappointing performance the previous year.
To keep pace with changing tastes, Coca-Cola has diversified and owns an array of brands including Honest Tea and Zico coconut water that better fit with the wholesome image that increasingly seems to appeal to people.
Still, about 70 per cent of the company’s global sales volume comes from carbonated soft drinks, according to Ali Dibadj, a Bernstein analyst.