Friday, 15 February 2008

Increase of sales and profits for Coca-Cola in 2007

The world number one soft drink displays a significant increase in its results (+18% to 5.98 billion) and sales (+20% at 28.85 billion). It is better than expected by analysts. The decline in sales of Coca-Cola and Sprite across the Atlantic was offset by a rise in emerging markets and the acquisition of non-fizzy drinks as Vitaminwater.

The drinks group Coca-Cola reported Wednesday results higher market expectations for the 4th quarter and full year 2007, showing a sharp rise in profits, set on sales growth.

In the fourth quarter, net income jumped 79% over the year, to 1.21 billion dollars or 0.52 dollars per share. The change from one year to another reflects the weight of exceptional items, making the comparison favorable this year. Coke said that the results of the fourth quarter of 2006 was affected by a depreciation taken by its affiliate Coca-Cola Enterprises related to its franchise in North America. Excluding extraordinary items, earnings per share (EPS) up to 0.58 dollars and was up 14% in one year. Meanwhile, turnover grew by 24% to 7.33 billion dollars. For this period, analysts tablaient on earnings per share of $ 0.55 and revenues of 7.01 billion dollars.

For the year as a whole, Coca-Cola reported net income of 5.98 billion, or $ 2.57 per share, an increase of 18%. Excluding exceptional BPA back to 2.7 dollars, and grew by 14% compared to 2006. Revenues were up 20% to 28.85 billion. The market expectations reported EPS of $ 2.67 for revenue of 28.41 billion.

Coca-Cola, PepsiCo as its competitor, has seen its results achieved in North America affected by the rising cost of raw materials and a shift in consumer tastes who turn to bottled mineral water or tea, considered best for your health. But the decline in sales of Coca-Cola and Sprite was offset by a rise in turnover in emerging markets and the effects of the acquisition of non-fizzy drinks as Vitaminwater.

The group showed increased activity in all regions where it is present, North America is the weakest with a very slight increase. The various products in the group are also all increases. In volume terms, sales of Coca-Cola were up 5% in the 4th quarter and 6% in 2007. In the last quarter alone, the International posted a 7% increase in volume, pulled by double-digit increases in emerging countries such as India, China, Brazil, but also in Turkey, Middle East - Europe and Asia. North America grew by 1%.

Also in the fourth quarter, soft drinks have reached a 4% increase in volume, with brands Coke, Fanta and Sprite. The non-aerated drinks grew by 11%, thanks to the success of the Dasani mineral water, sports drink Powerade, but also fruit juice Minute Maid.

Commenting on these results, management has stressed in a press release, the success of its strategy, based on the revival of the attractiveness of its flagship products, the expansion of product portfolio and geographic balance. Without giving any forecasts for 2008, Coca expressed "confidence" in the implementation of a new "good year".

Since 2004, when the group was then faced with a decline in its sales in the United States, Coca-Cola has sought to give a helping teens to its brands through marketing efforts, but also adapting to the tastes of the day , as with the declination of the drink Coca-Cola light versions, zero calorie perfume and vanilla.