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The company said it was gaining marketshare against rivals,
echoing sector analysts' views ahead of the results that it was
eating into the sales of arch rival PepsiCo Inc <PEP.N>.
While the Coca-Cola's overall volume sales in North America
remained flat in the third quarter, Sprite sales rose in the
mid-single digits and tea and coffee sales increased in the
low-single digits. Diet Coke sales were down.
PepsiCo this month reported a drop in quarterly beverage sales
in North America for the first time in two years, hit by weak
demand for Gatorade and marketing missteps. [nL4N1MF23T]
Coca-Cola is gaining share from rival Pepsi due to better
performance in the territories it has franchised to bottlers and
a more aggressive push in the non-carbonated drink business, RBC
Capital Markets analyst Nik Modi wrote in a pre-earnings note.
Coca-Cola has also been cutting costs, including by the
refranchising of its low-margin bottling operations and reducing
workforce. Cost of goods sold fell 18 percent in the quarter,
and general and selling expenses dropped 20 percent.
Net income attributable to Coca-Cola's shareholders rose to
$1.45 billion, or 33 cents per share, in the third quarter ended
Sept. 29, from $1.05 billion, or 24 cents per share, a year
earlier. [nBwgSl57a]
Excluding items, the company earned a profit of 50 cents per
share, beating the average analyst estimate of 49 cents,
according to Thomson Reuters I/B/E/S.
Revenue fell 14.6 percent to $9.08 billion as the company
refranchised some bottling operations, but beat the average
estimate of $8.72 billion.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Saumyadeb Chakrabarty)
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