Coca-Cola's quarterly revenue lose fizz because of currency headwinds

Soft drink giant Coca-Cola posted worse-than-expected revenue third quarter revenue on the back of adverse currency movements.

For the three months to 2 October, the Atlanta-based company saw its earnings decline 31.2% year-on-year to $1.45bn, or 33 cents per share, compared with analysts’ expectations for earnings of approximately 50 cents per share.

Coca-Cola said its earnings per share had been badly hit by severe currency headwinds due to the weakening of foreign currencies, a crucial issue for the company, as it generates most of its profits outside the US.

Revenue for the three months declined 4.6% from the corresponding period in 2014 to $11.4bn, falling short of consensus calling for an $11.5bn reading.

On an organic basis, which strips out currency fluctuations, revenue grew 3% year-on-year, the group said, adding it expects foreign currencies to trim seven percentage points off its full-year revenue and 11 percentage points off its annual operating income.

Coca-Cola shares were up 0.22% to $42.38 at 1554 BST on Wednesday.