Coca-Cola profits up
COCA-COLA Enterprises reported higher-than-expected quarterly profit and raised its 2010 forecast yesterday, which it credited to World Cup promotions and slight price increases in North America.
The firm, which bottles and distributes drinks on behalf of Coca-Cola, said net profit rose to $356m (£228m) in the second quarter, from $313m a year earlier.
However, it warned revenue in America will be flat for the rest of the year. “We’ll be less cautious, I would imagine, as we come out of Labour Day than we are today,” said Steve Cahillane, head of North American operations.
The company raised its 2010 earnings forecast to $1.73 to $1.77 a share, saying the jump could have been closer to $1.83 if it weren’t for unfavourable exchange rates.
Volume rose 5.5 per cent in Europe in the second quarter, propelled by the introduction of Ocean Spray cranberry juice and expanded distribution of the Capri Sun brand.
Sales volumes were also up in America, with a rise of 0.5 per cent concentrated largely on its trademark Coca-Cola and Diet Coke drinks.
Shares in Coca-Cola closed down 0.3 per cent at $54.68 in New York trading yesterday.