Coca-Cola today reported an 11 per cent drop in quarterly net income amid weak soft drink sales in North America, higher expenses and a jump in taxes due to a repatriation of foreign earnings.
But the world's largest soft drink maker said it had gained on its rivals in the fast-growing bottled water and sports drink markets and held its ground in the carbonated soft drink category in the first quarter.
Reigniting sales of core brands, such as the flagship Coke Classic product, has been a top priority since the company began restructuring of its global operations more than five years ago.
Coca-Cola earned $1 billion, or 42 cents a share, for the three months ended March 31st, compared with $1.13 billion, or 46 cents a share, a year earlier. Revenue increased to $5.27 billion from $5.08 billion.
Excluding the tax liability of a decision to repatriate about $2.5 billion earned overseas, its profit would have been 47 cents a share.
Coca-Cola yesterday agreed to undertake internal reforms and accept a cease-and-desist order under a legal settlement with authorities over a long-running accounting inquiry, the US Securities and Exchange Commission said.
The SEC said the investigation centered on Coca-Cola between 1997 and 1999 asking bottlers in Japan to make additional purchases of concentrate to boost Coke's revenues, enabling the company to meet profit targets.