Net profit of Coca-Cola (NYSE:KO), the largest soft drinks manufacturer in the world, increased by 6 percent in the third quarter, reaching $2.45 billion, up from $2.31 billion in the same period a year ago, supported by higher sales volume in North America. Group revenues fell by 3 percent to $12.3 billion, but exceeded analysts’ estimates of $12.05 billion, while the sales volume rose by 2 percent, according to data released Tuesday by Coca-Cola.
Sales volume increased by 2 percent in North America, where the company slashed prices to attract customers. In the second quarter, sales volume in North America decreased by 1 percent. In Europe sales volume decreased by 1 percent after a 4 percent decline in the second quarter.
The increase in North America and the slower decline in Europe offset the growing instability in emerging markets, said Turkish-American Chairman and Chief Executive Officer of Coca-Cola, Muhtar Kent.
Kent expressed his concerns about the government shutdown and the fiscal deadlock: “If it continues there’s no question that the negative consumer sentiment is most likely going to impact businesses of all nature. Everyone is guardedly optimistic that logic is going to prevail and that we will move forward in a constructive, collaborative way for the benefit of the country and also the benefit of the world because this obviously impacts the U.S. immediately and directly, but impacts the world also.”
He added that the company is not immune to the impact of global macroeconomic events, but said that management’s vision for 2020 and long-term strategies will remain intact.
Currency exchange rates had an impact on the third quarter net income of 2 percent and 5 percent on the operating profit in comparable terms. The company warned that currency fluctuations will reduce operating profit in comparable terms by 6 percent in the fourth quarter.
Coca-Cola stock closed the day at $37.66 on NYSE with a market capitalization of $166.95 billion.
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