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Coca-Cola Q2 Profit Flat, Revenue Climbs 3%

Posted On: 7/19/2012

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TAGS: Coke, Coca-Cola Co.'s, second quarter, vending, vending machine, beverage news, Powerade sports drinks, Gold Peak, Honest Tea, iced teas

ATLANTA -- Coca-Cola Co.'s second quarter net income was in line with year-earlier performance, helped by pricing increases in North America late last year.

Net income was $2.79 billion, or $1.21 a share, compared with $2.8 billion, or $1.20 a share, in the comparable 2011 period. Revenue in the quarter climbed 2.7% to $13.1 billion.

The world's largest soda maker saw worldwide volume grow 4% in the second quarter. Sparkling beverage volume grew 2%. Noncarbonated beverage volume climbed 9%. Ready-to-drink tea volume grew 13% in the quarter; bottled water volume rose 10%; and energy drinks volume climbed 21%.

Beverage volume in North America climbed 1%, led by higher sales of noncarbonated drinks like Powerade sports drinks and Gold Peak and Honest Tea iced teas. Those gains offset a 2% decline in carbonated soft drink volume, which the company attributed to last year's price increases.

In China, volume rose 7% while sales declined 4% in Europe.

Coca-Cola raised its prices last year to help offset higher costs for commodities such as sweeteners and plastic for bottles. Pricing rose 3% in the second quarter, with a 5% increase on soft drinks in North America.

On a positive note, Coca-Cola now expects commodity costs to increase by $300 million over last year -- about $50 million less than previously expected -- based on a prolonged decline prices for aluminum and plastic among other inputs.