THE FIFA World Cup failed to prop up Coca-Cola’s ongoing sluggishness last quarter, after tougher corporate rules in Latin America and an operational overhaul weighed on profits.
The iconic business said the tournament in Brazil had helped contribute to a one per cent rise in sales globally. Fanta and Sprite sales also rose two and six per cent respectively.
But it struggled to translate this into the bottom line, leading to a one per cent decline in revenues to $12.6bn (£7.4bn) for the three months ending June.
Net income, a form of profits, was also $81m lower than the same time last year at $2.6bn. Coke said currency headwinds, an overhaul of some of its bottling operations in Brazil and increased regulatory pressures in Latin America took the sheen off growth.
A new fizzy drinks and junk food tax introduced in Mexico, one of its key markets, earlier this year depressed volume sales in the country by three per cent.
A law capping how much profit a company can make introduced by Venezuela’s socialist government also hit Coke’s operations there. The company reported a nine per cent decline in Latin America revenues overall, its worst performing market.