Coca-Cola reported a 2 per cent decline in its net revenue to US$11.1 billion in the first quarter of this year, down from $11.3 billion in the same period last year, citing the impact of re-franchising bottling operations and currency headwinds.
The company’s operating margin was recorded at 32.9 per cent, including forex impacts and items impacting comparability.
Earnings per share (EPS) grew by 5 per cent to 77 cents following a 9-point impact from currency, and the company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.
“Our performance this quarter once again demonstrates the effectiveness of our all-weather strategy,” said James Quincey, chairman and CEO of The Coca-Cola Company.
“Despite some pressure in key developed markets, the power of our global footprint allowed us to successfully navigate a complex external environment.”
Moving forward, Coca-Cola expects a revenue growth of 5 per cent to 6 per cent, including a 2 per cent to 3 per cent currency impact.
The expected revenue growth also considers the impact of hedged positions, in addition to a slight headwind from acquisitions, divestitures and structural changes.
Despite the corporation’s operations being local in each market, Coca-Cola expects a manageable impact from global trade dynamics on certain areas of its cost structure across markets.
A 5 per cent to 6 per cent currency-driven impact is expected to affect the comparable EPS projected by the company.
