The Coca-Cola Company has reported a 'solid third quarter' in its 2017 financial year, reaffirming its full-year outlook.
The drinks giant saw net revenues decline by 15%, to $9.1 billion, in the quarter, which it attributes to the ongoing refranchising of bottling territories. However, organic revenue went up by 4%, and the company's operating margin grew by 200 basis points.
"I am encouraged with our progress and results in the quarter," said James Quincey, president and CEO of the Coca-Cola Company.
"Our performance reflects the strength of an organisation that is focused on delivering against its financial commitments while also making substantial structural and cultural changes," said Quincey.
Quarterly Performance
Coca-Cola says that despite continued macroeconomic challenges in certain Latin American markets, emerging and developing markets saw improving trends in terms of volume sales.
This was offset by the performance in developed markets, which, the company says, was negatively impacted by weather and the strong results from the previous year.
The company gained value market share in non-alcoholic ready-to-drink beverages. This value-share growth outpaced volume share, which, the group says, reflects its continued shift in focus, from volume growth to value growth.
It notes that Coca-Cola Zero Sugar, in particular, continued to perform well, with case-volume growth in the high single digits during the quarter.
Company Developments
The Coca-Cola Company made a number of significant business deals in this quarter, including the acquisition of Mexican sparkling water brand Topo Chico and a majority interest in Coca-Cola Beverages Africa.
Earlier this week, Coca-Cola North America announced that J. Alexander Douglas Jr. is set to retire as president and will be succeeded by the group's chief retail sales officer, Jim Dinkins.
“Our North American business has been thriving and is well positioned for continued success,” said Quincey.
"Jim Dinkins is a highly experienced, respected executive who will lead Coca-Cola North America as it continues to evolve and grow.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
