Coca-Cola reported that its profits increased modestly in the fourth quarter. It benefitted by the growth in emerging markets. Its net income was $1.9 billion, which is 41 cents per share, compared to $1.8 billion, 39 cents per share, from the previous year. If one-time items were excluded, Coca-Cola got 45 cents per share. This was higher by a penny to the estimates made by analysts.
It looked like people were drinking less soda in the United States and Europe. This could be due to the uncertain economic conditions across the globe. The Atlanta-based beverage giant said that its profit increased in the fourth quarter but its sales volumes dropped in Europe and China.
Coca-Cola is the world’s largest soft drink maker. Aside from its namesake soda, it also owns the brands Sprite and Minute Maid. It got its greatest success overseas. Sales in Eurasia and Africa went up 5 percent.
Europe was a problem market for Coca-Cola. Sales dropped 6 percent in the region. Coca-Cola said that weak consumer confidence, aggressive discounting and bad weather led to the decline.
Shares of Coca-Cola dropped 2.1 percent to $37.79 in early morning trading. It is part of Dow and competes directly with PepsiCo, Monster Beverage, and Dr Pepper Snapple Group. Coca-Cola reported that its fourth quarter revenue was up 3.9 percent to $11.5 billion.
For the year, Coca-Cola earned $9.2 billion or 2.01 cents per share. Its sales were at $48.03 billion. This was an increase from $8.9 billion or 1.92 cents per share and sales of $46.55 billion the previous year.
