Coca-Cola second-quarter profits fall 4% as bad weather and China slump hit sales
Global sales volume grew 1% but Europe sales slid due to weak economy
Coca-Cola reported weaker-than-expected sales volumes yesterday due to ongoing economic malaise and unusually poor weather, sending its shares down nearly 3 per cent. Photograph: Reuters
Coca-Cola, the world’s largest beverage company, said second-quarter profit fell 4 per cent as unseasonable bad weather and slowing economic growth in China restrained world sales. Struggling consumers in Europe and changing US beverage tastes also hit sales.
Global sales volume grew 1 per cent. Europe sales volume slid 4 per cent because of the weak economy and flooding in Germany. China’s volume was little changed after a 7 per cent gain a year earlier. North America volumes fell 1 per cent amid unseasonably cool weather. Revenue fell 2.6 per cent to $12.7 billion.
Arch-rival PepsiCo is stepping up the fight in China. Meanwhile in the US beverage makers have come under added pressure in recent years as officials try to curb high obesity rates. – Bloomberg