ATLANTA, Georgia - Soft-drink giant Coca-Cola said Tuesday its first-quarter earnings dropped 11 percent from a year earlier to 1.002 billion dollars, hit by fewer selling days and increased marketing costs.
That amounted to 42 cents per share without one-time gains and losses, a penny below the average analyst forecast calculated by Thomson Financial First Call.
The soft-drink giant's quarterly revenue rose four percent, reaching 5.27 billion dollars, as worldwide unit case volume increased three percent.
"These results reflect our stated intent to step up our investments in marketing, innovation and organizational capability building while effectively managing our portfolio of countries," said Neville Isdell, chairman and chief executive officer.
"We are taking the actions necessary to position the company for future growth."
In an effort to adapt to changing consumer tastes around the world, Coca-Cola last year announced a new marketing campaign along with investments for new products, in what Isdell called a "manifesto for growth."
"We have now completed a major review of our operational framework under the umbrella of our new Manifesto for Growth," the chairman said.
"A solid foundation has been laid from which future growth paths will continue to emerge. Our recently announced operational and geographic alignment will reinvigorate our marketing, stimulate innovation and lead to enhanced execution at a local level."
Coca-Cola said first quarter operating income declined six percent compared with the prior-year first quarter, impacted by two fewer shipping days, increased investments in marketing and higher stock-based compensation expenses. This was partially offset by positive currency benefits from a weaker US dollar.
The growth in case volume was led by a four percent increase in international operations, including double-digit unit case volume growth in key emerging markets, such as China, Brazil, Russia and Turkey. Offsetting these results were declines in Germany, the Philippines, India and northwestern Europe.
Carbonated soft-drink unit case volume rose by two percent, with noncarbonated beverages up four percent, led by juice and juice drinks.
Bottled water case volume rose eight percent, driven by worldwide growth of 15 percent in the Dasani brand.
04/19/2005 14:04 GMT