ATLANTA – Coca-Cola said its profit rose in the latest quarter as it raised prices, cut costs and benefited from a financial gain related to its purchase of a stake in energy drink maker Monster Beverage.
The Atlanta-based maker of Sprite, Dasani and Powerade said worldwide beverage volumes rose 2 per cent in the quarter, with revenue climbing 4 per cent when stripping out the impact of currency exchange rates.
To offset slower growth and improve its financial performance, Coca-Cola has said it would slash costs and pour some of that money into increased marketing.
With North Americans cutting back on pop, the company has also been shifting its strategy to lift prices and promote packages like mini-cans and glass bottles that tend to cost a little more.
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In a phone interview, Coca-Cola Chief Financial Officer Kathy Waller said the company raised prices “across all of our packages” during the period.
Tops estimates
In North America, Coca-Cola said core revenue growth of 5 per cent was driven by higher pricing and a more favourable mix of products. Its volume of carbonated drinks in the region rose by 1 per cent, boosted by its expanded distribution of Monster energy drinks.
As part of its deal to buy a stake in Monster, Coca-Cola sold its own energy drink brands to Monster. That resulted in a gain during the quarter.
For the quarter ended July 3, Coca-Cola Co. said its profit rose to $3.11 billion, topping forecasts. A year earlier, the company earned $2.6 billion. Total sales amounted to $12.16 billion, also topping the $12.15 billion Wall Street had forecast.
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