Coca-Cola Co.'s third-quarter results included gains in volume, revenue and profits -- and to hear Coke's chief executive describe it, a shot of confidence.
Worldwide sales volume increased 5 percent and the company posted 2 percent growth in North America. After a string of declines in its flagship market, Coca-Cola posted two straight quarters of growth in North America in the lead-up to its early October takeover of North American bottling operations.
"Often what happens when companies embark on large acquisitions or mergers, the eye is taken off the ball of the daily operation of the business, and the business suffers," CEO Muhtar Kent told The Atlanta Journal-Constitution. "It is pleasing to me that we continued our momentum. We've been able to generate growth. It is important to our employees to demonstrate that we can do it even before the deal."
Coca-Cola's revenue increased 5 percent to $8.43 billion, and the company earned 88 cents per share, up 9 percent. Shares rose slightly in early afternoon trading on the New York Stock Exchange.
Sales in the company's Eurasia and Africa region grew 12 percent, and the Pacific region grew 11 percent. Latin America's 4 percent volume growth was a bit softer than expected, Credit Suisse analyst Carlos Laboy said, even though Brazil chipped in an impressive 13 percent growth rate. But the company's volume growth in North America, including Powerade's 32 percent growth, pleasantly surprised several analysts.
"Performance was strong," Laboy said. "A solid quarter," said J.P. Morgan analyst John Faucher.
Coca-Cola said it will repurchase about $2 billion of its shares this year.
Kent said that Coke Zero -- celebrating its 18th straight quarter of double-digit volume growth in North America -- as well as aggressive marketing and a diverse lineup of packaging and pricing options are helping Coca-Cola expand its drinker base.
"We've been able to demonstrate that that is paying off," Kent said. "That takes time. The good news is that we're trending in the right direction. People once again believe in our business in North America. They believe that North America can be a growth area."
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