Amid a shrinking market for sugary, carbonated beverages, Coca-Cola (NYSE: KO) delivered earnings on Wednesday that topped estimates on the top and bottom lines, showing its ability to manage industry headwinds by focusing on prices and newer products like Coca-Cola Zero Sugar.
Third-quarter adjusted Earnings per Share registered at 50 cents, compared to the 49 cents expected. The Atlanta beverage giant reported net revenue of $9.08 billion, down 15% from the year-ago period, but ahead of analysts' expectations of $8.72 billion. Coke pointed to its re-franchising efforts to explain part of the revenue decline.
Total unit case volume, a metric that strips out the impact of foreign exchange and pricing, was even. Its juice, dairy and plant-based beverages, as well as its tea and coffee drinks, grew 1%. Its soda sales stayed flat, and water and sports drinks dropped 1%.
Net income grew to $1.45 billion, up from $1.05 billion in the year-earlier quarter. Coke has been carrying out a cost-cutting program that has included re-franchising its bottling operations and, in April, a 20% reduction in its workforce.
Said CEO James Quincey “I am encouraged with our progress and results in the quarter. Our performance reflects the strength of an organization that is focused on delivering against its financial commitments while also making substantial structural and cultural changes."
For the year, Coke expects earnings to be within a range of flat to down 2% from $1.91 a share in 2016. It anticipates organic revenue to grow 3%.
Shares opened Wednesday at $46.18, exactly where they’d closed on Tuesday
