Coca Cola falls flat on cautious outlook

The Coca-Cola Company said that strong demand for zero-sugar fizzy drinks had helped it meet analysts' expectations in 2018 - but warned that organic growth would slow in the current year.

Net revenues fell 6% in the three months to December, to $7.1bn, hurt by currency headwinds and the refranchising of Coca-Cola's low-margin bottling operations. The fall was expected, however, with analysts looking for sales of around $7.03bn. For the full-year, net revenues fell 10% to $31.9bn.

Fourth-quarter earnings per share from continuing operations were $0.18 against a loss in the previous year of $0.66. Full-year comparable EPS meanwhile was ahead 9% at $2.08, impacted by a 4% currency headwind, the Atlanta-based company said.

James Quincey, chief executive, said he was pleased with the “strong organic revenue and earnings growth” in 2019, adding: “Coca-Cola has established a strong foundation to capitalise on long-term growth opportunities and drive sustained shareowner value.”

However, shares in Coca-Cola fell in pre-market trading, shedding 4%, as investors digested a disappointing 2019 outlook.

The drinks group said it was expecting organic revenues to grow around 4% in 2019 with comparable EPS coming in between 1% lower and 1% higher than 2018’s figure of $2.08. Organic revenues rose 5% in 2018.