The Coca-Cola Company (NYSE:KO) today posted its earnings for the first quarter that outperformed the estimates of Wall Street. The results of the company were backed by encouraging sales from emerging markets.
The quarterly earnings for the company, excluding one time items, came in at 46 cents per share, an increase over 45 cents in the first quarter of 2012. The Coca-Cola Company (NYSE:KO), however, posted a decline in revenues at $11.04 billion compared to $11.14 billion in the previous year. According to analysts estimates, the earnings per share were estimated at 45 cents on $10.94 billion in revenue.
The earnings, including all items, for the first quarter ending March, fell 14.8 percent to $1.75 billion, compared to $2.05 billion a year earlier owing to sagging sales in US and European markets and restructuring costs in North America. Operating revenues for the company were down 1 percent to $11.04 billion while the operating income for the company fell 4 percent to $2.41 billion.
The soft drinks major reveal that the operating income from the crucial North American region was down 24 percent owing to investments in the ongoing productivity and reinvestment program.
Sales from the Latin American region surpassed Europe and improved 4 percent. Eurasia and Africa divisions registered a 9 percent increase in sales mainly owing to the company’s acquisition of Saudi Arabia bottler Aujan.
The emerging economies like Thailand, India, Russia, Mexico and Brazil contributed in the volume growth of the company. The rate of growth in China and the United States was constant with a marginal 1 percent improvement in volume growth, in each of the markets. The case volumes of the giant soft drink maker increased by 4 percent backed enormously by the Eurasia and Africa operations.
Muhtar Kent, chairman and CEO of The Coca-Cola Company (NYSE:KO) said that he is satisfied with the financial performance of the company in the first quarter. The company according to Kent, performed impressive in the global uncertain environment. He further said that the company is in the process to achieve its target for the fiscal 2020.
“The company once again delivered solid growth against the backdrop of a still uncertain global economy,” said Muhtar Kent in a statement.
The soft drink giant also announced plans to better carve up territory with five major US bottlers for the company’s beverages: Corinth Coca-Cola Bottling Works, Coca-Cola Bottling Company United, Inc., Swire Coca-Cola USA, Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE) and Coca-Cola Bottling Company High Country.
The share prices bounced after the results were announced by almost three percent in extended hours trading.