Coca-Cola's first-quarter profit slips; strong dollar weighs

Beverage maker Coca-Cola posted a drop in first-quarter earnings as it took a hit from a stronger greenback and charges related to refranchising.

First-quarter earnings came in at $1.48bn or 34 cents a share, down from $1.56bn or 35 cents a share in the same quarter a year ago.

Excluding charges related to refranchising certain North American territories and costs associated with its previously announced productivity, integration and restructuring initiatives, the company reported earnings per share of 45 cents, which was a touch above expectations.

Meanwhile, revenue fell to $10.28bn from $10.71bn in the first quarter of 2015, just missing analysts’ forecasts of $10.29bn.

The company said fluctuations in currency exchange rates resulted in a 10-point headwind on comparable operating income and a 12-point headwind on both comparable income before taxes and EPS in the quarter.

Global beverage volume increased 2% in the first quarter.

Chairman and chief executive Muhtar Kent said: “We continue to transform The Coca-Cola Company into a company that is focused on our core value creation model of building strong brands, enhancing customer value and leading our franchise system.

“Amidst a challenging global macro environment, the continued focus on our five strategic initiatives enabled us to gain global value share in the first quarter and deliver positive top-line growth and strong underlying margin expansion. Our operating results are driven by our commitment to sustainable growth, and we are confident that we have the right strategies in place to achieve our full-year outlook and drive long-term value for our system and shareowners.”