Coca-Cola sales beat forecasts as volume soars 20 per cent
18 Apr 2012
Sales of Coca-Cola Company's myriad beverages were up around the world in the first quarter, with India clocking a huge consumption increase as volume soared 20 per cent.
With the growth in sales volume, the company's earnings also exceeded analysts' expectations at $2.05 billion, or 89 cents a share, in the quarter that ended 31 March as against 82 cents a share in the same quarter last year.
Revenues grew 6 per cent to $11.14 billion from $10.5 billion in the first quarter last year, pushed by a 5 per cent increase in sales volume driven by even larger increases in emerging markets. China followed India, clocking a growth of 9 per cent, followed by a more modest 4 per cent in Brazil.
According to Muhtar Kent, chairman and chief executive of Coca-Cola whose brands include Fanta, Vitaminwater and Minute Maid juices, more than anything, the company had been able to crack the calculus in the challenging environment.
Kent attributed the company's success to investments it had made in the economic downturn that was now paying off as the American economy showed signs of stabilising and emerging markets gained even more steam.
Americans had begun traveling and eating out more, which increased sales of the company's products, he added.
However, sales in Europe remained weak and showed little sign of improvement, Kent said.
