Coca-Cola Announces Q1 Results, Worldwide Sales Rise 5%

Although the volume growth came from all regions, Coke said increases were far greater in emerging markets. In the region encompassing Russia, India, the Middle East and Africa, for example, volume grew 9 percent, compared with a 2 percent increase in North America.

18 April 2012 --- The world’s largest soft drink manufacturer reported better-than-expected profit for its first quarter as its products achieved further growth around the globe.

Although the volume growth came from all regions, Coke said increases were far greater in emerging markets. In the region encompassing Russia, India, the Middle East and Africa, for example, volume grew 9 percent, compared with a 2 percent increase in North America.

Total revenue was $11.14 billion for the three months ended March 30, up 6 percent from $10.52 billion a year ago.

Coke has managed to offset rising commodity costs in recent years by offering drinks in smaller packages that bring bigger profits. Just four years ago, for example, the company offered only one size for on-the-go occasions in the U.S. -- a 20-ounce bottle.

Since then, Coke has rolled out drinks in 14-ounce, 12-ounce and 12.5-ounce bottles, as well as a 7.5-ounce "mini-can.

Although Coco-Cola does not break out price increases, the company said such pricing models helped drive up revenue by 3 percent.

Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, "Our first quarter results underscore The Coca-Cola Company's resilience and a long-term focus on quality growth in every region of the world.   Despite a continued mixed global environment, our hardworking teams achieved broad-based volume and value share gains in nonalcoholic ready-to-drink beverages globally, with volume growth across every geographic operating group and revenue growth ahead of our long-term growth target.”

The company also said that the cost-cutting program it began in the quarter is on track. When completed, the measures are expected to save up to $650 million annually by 2015.

Coke is looking to trim costs wherever possible as another way to offset rising prices for ingredients, which continue to eat into profits for food and drink makers industry-wide. Coke said its cost of goods rose 10 percent in the quarter.