Coca-Cola has reported a 7% drop in global revenues in three months to US $10.6 billion, underlying impacts by a foreign currency exchange headwind of 2% and a headwind from acquisitions, divestitures and structural items of 8%. Net profit fell 28% to US $1.05 billion in the quarter.
This marks the sixth consecutive quarterly decline in revenue for the world’s biggest soft drinks company.
In Latin America and Europe, Middle East and Africa regions, the beverage company posted a 4% slide in sales, whereas Asia had a 4% growth and North America rose 4%. The United States, Japan and Western Europe standout from the overall performances , said the company in a statement.
Water and sports drinks helped drive a 3% rise in still beverage sales.
Sales of non-carbonated drinks, including iced tea, juices and energy drinks, rose 2% in North America.
Volume sales of carbonated drinks such as Sprite, Fanta and Coca-Cola Zero were behind the 3% rise in North America to $2.66 billion, while Diet Coke sales fell.
This year in April, the company launched a new “One Brand” strategy, which unites Coca-Cola, Coca-Cola Light, Coca-Cola Zero and Coca-Cola Life under the iconic Coca-Cola brand. (Read more: Redesigned Coca-Cola cans arrive in HK in red-themed campaign, Coca-Cola reveals new “one brand” packaging)
James Quincey, Coca-Cola president and chief operating officer, said in a conference last month that its marketing campaign, “Taste the Feeling” had began to boost sales.
“The early signs from the data are starting to look very encouraging, especially in those places where we launched first and we launched the fastest and the hardest. And we see encouraging results in terms of retail sales growth of the Coca-Cola brand in total,” he said, according to Seeking Alpha.
“We believe that marketing takes its time to build up. It is a huge business, and the Coca-Cola business is not going to suddenly change overnight.”