Fourth-quarter profits at the world’s largest soft-drink maker, Coca-Cola Co (NYSE: KO), jumped 55% on rising volume in markets such as China and India. Lower costs also played a critical part in giving a boost to KO’s profits.
The Atlanta-based company said its net income for the quarter rose to $1.54 billion, or $0.66 a share, from $995 million, or $0.43, a year earlier. The earnings equaled the consensus expectations of $0.66 per share. Coca-Cola’s net operating revenues rose 5% to $7.51 billion, beating the average forecast of $7.22 billion. While revenues at Eurasia and Africa rose 6.9% to $542 million and revenues in Latin America climbed 19% to $1.12 billion, North American volumes slipped 4.5% to $1.89 billion.
KO’s sales by case volume across the world rose 5%, despite a decline in volume sales in North America, on a 29% jump in China and 20% in India. The sales by volume outpaced the 2% gains recorded in Q3 and 4% in Q2.
Coke's competition with the second-largest soft-drink maker, PepsiCo Inc (NYSE: PEP), is set to intensify this year, as PEP completes its planned acquisition of Pepsi Bottling Group Inc (NYSE: PBG) and PepsiAmericas Inc (NYSE: PAS).
KO’s shares were up 4.37% to $54.95 at 12:14 p.m.
Read more from Benzinga's Markets.
