Coca-Cola posts modest sales growth in full-year results

Coca-Cola, the world's biggest soft-drinks maker, posted modest gains in net sales revenue over the full year as unit case volumes declined in established markets and it warned of continued volatility in its Italian market.

Coca-Cola, the world's biggest soft-drinks maker, posted modest gains in net sales revenue over the full year as unit case volumes declined in established markets and it warned of continued volatility in its Italian market.

The company reported a 3.0% rise in net sales revenue to €7,045m and a 6.0% increase in goods sold to €4,518m over the full year.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

Volume grew by 2.0% in the fourth quarter of 2012. However, an 8.0% volume increase in emerging markets and a 1.0% volume increase in emerging markets were partly offset by a 5.0% volume decline in established markets.

Weakness in all key categories in Greece and a decline in sparkling beverages in Italy were the key drivers of the volume decline in the established markets segment during the quarter, the group reported.

Advertisement - Article continues below

Volume in Italy declined by mid-single digits in the fourth quarter, reflecting the increasing weakness in underlying economic and trading conditions. The company said that austerity measures were negatively affecting disposable income and unemployment continued to rise.

"We expect volatility to continue, particularly in view of the upcoming elections in February and the further one percentage point VAT increase in July," the company said.

Comparable operating profit in the established markets segment declined to €13m in the fourth quarter and €160m in the full year 2012.

"Lower volume, increased raw material costs and negative category mix more than offset the improvement in price mix and the benefits from our restructuring initiatives, which resulted in lower operating expenses in the fourth quarter, as well as the full year," the company results explained.




Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular

Global Economy

Helicopter money is coming very soon – but what form will it take?

We’re heading for a”new normal”, says John Stepek – fiscal stimulus, and lots of it. Here’s what that really means.
16 Mar 2020

The helicopters are being warmed up – we might be closer to a bottom than you think

Governments are starting to act to bolster their economies against coronavirus. But, asks John Stepek, will throwing money at the problem slow the mar…
17 Mar 2020
Investment trusts

Now could be a good time to bag an investment bargain

We like investment trusts here at MoneyWeek. And they can be even better during a market crash.
16 Mar 2020

Is 2020 the year for European small-cap stocks?

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, on why he believes European small-cap stocks are performing well.
12 Feb 2019