Coca-Cola shares fall after second quarter results miss
Weakness in developing markets like China and Argentina overrun strong results in larger markets
Updated : 15:16
Coca-Cola Company's stock price dropped on Wednesday after the world's biggest drinkmaker announced that it missed its estimates for Q2.
Shares were slumping 2.94% to $43.56 this morning following the mixed results in which the company reported comparable earnings of 60 cents per share, while revenue did not reach the $11.64bn expected, coming in at $11.54bn, a fall of 5% from the year-over-year period.
"Strong performance in some of our largest and most developed markets, including the United States, Mexico and Japan, was offset by difficult external conditions in many of our emerging and developing markets, including China and Argentina," Chief Executive Muhtar Kent said in a statement.
Instability in Latin America leading to high levels of inflation have hurt Coca-Cola's emerging markets, with 9% of the total revenue coming from the region.
Revenue from North America, the company's largest market, rose 2 percent in the second quarter ended July 1, while it fell in all other regions.
Along with many other drinks and food companies that provide sugary and unhealthy products, Coke is feeling the pressure from healthier competitors which supply juices, teas etc.