Diet Soda Sales, Higher Prices Drive Coke's Q3 Momentum

Posted On: 11/7/2018

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ATLANTA – Coca-Cola Co. said double-digit sales volume growth for Coca-Cola Zero Sugar fueled strong earnings in the third quarter.
Net income climbed to $1.88 billion, or 44¢ a share, up from $1.45 billion, or 33¢ a share, during the comparable period last year. Revenue fell 9% to $8.25 billion from $9.08 billion a year ago.
The beverage giant raised prices in North America to offset higher import and transportation costs during the third quarter.
Coke said double-digit growth in sales volume for Coca-Cola Zero Sugar, and strong sales of other carbonated beverages fueled its earnings results. Sparkling soft drink sales grew 2%, driven by sales of regular Coca-Cola and diet Fanta and Sprite. Water and sports drink sales rose 5%.
Juice, dairy and plant-based beverage sales declined 3%.
"We continue to be encouraged by our performance year-to-date as we accelerate our evolution as an even more consumer-centric, total beverage company," said Coca-Cola president and chief executive James Quincey said in a statement. "The recent leadership appointments are intended to help accelerate the transformation of our company."
The company completed refranchising its bottlers in North America, which resulted in a charge of $275 million.
Coca-Cola made a $5.1 billion purchase of British coffeehouse chain Costa. The company said the deal, which is expected to close in the first half of 2019, will give it "the capabilities to build a global coffee platform."