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Shares of the world's largest beverage maker fell 1.7 percent to
$45.80 in premarket trading on Wednesday.
Coke and smaller rival PepsiCo Inc <PEP.N> have been hurt as
consumers increasingly turn health-conscious, cutting back on
fizzy drinks and opting for teas, fruit juices and smoothies.
The rise in the dollar has also hit the companies, which have a
sizeable presence in markets outside the United States,
including China and Brazil.
The average value of the dollar rose 2.6 percent in the first
quarter from a year earlier. The U.S. currency had risen 18
percent in the first three months of 2015.
This week, PepsiCo also reported a drop in quarterly sales, but
strong demand for its snacks in North America helped the company
post a better-than-expected profit.
Coke's sales in Europe, its third biggest market, declined 1
percent in the quarter ended April 1, while a strong dollar and
weak demand in Brazil pulled down Latin America sales by 12.2
percent.
The net income attributable to the company's shareholders fell
4.5 percent to $1.48 billion, or 34 cents per share.
Excluding items, Coke earned 45 cents per share, beating the
average analyst estimate by a cent, according to Thomson Reuters
I/B/E/S.
Coke, which has a target of $3 billion annual cost savings by
2019, said selling, general and administrative expenses declined
nearly 8 percent.
Net operating revenue fell 4 percent to $10.28 billion.
However, total organic revenue, which excludes the impact of
acquisitions, divestitures and currency movements, rose 2
percent.
Coke maintained its 2016 forecast of 4-5 percent growth in
organic revenue and 4-6 percent growth in earnings per share on
a constant-currency basis.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by
Kirti Pandey)
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