Coca-Cola Co.’s first-quarter results came in above expectations as the world’s biggest beverage maker saw global sales volume grow.
The Atlanta-based company says it earned $1.75 billion, or 39 cents per share, for the period ended March 29. That’s down from $2.1 billion, or 45 cents per share, a year earlier.
Not including one-time items such as restructuring charges, however, the company says it earned 46 cents per share. That’s better than the 45 cents per share analysts expected.
Net revenue declined to $11.04 billion, from $11.14 billion a year ago, hurt by foreign currency exchange rates and two fewer selling days in the period. Analysts expected $10.97 billion.
Citigroup notes that the company was facing some headwinds recently:
“In addition to the fact that KO has faced a tough external environment (foreign exchange, poor weather, negative PR surrounding obesity issue, and weaker consumer spending) over the last year, we think the lack of visibility with respect to the timing and impact of KO’s plans to re-franchise its U.S. bottling operations has been a dark cloud hanging over the stock.”
At least this headwind has been removed by announcing to re-franchise some of its territories, with the transactions closing in 2014. The resolution of this issue and the good numbers are the reason why Citigroup retains a buy rating with a target price of $45. Shares were up 3 percent in pre-market New York trading April 16 to $40.
The Associated Press contributed to this report.
