- Coca-Cola Records $2.6bn Profit In Q3 2019
The Chief Executive Officer of Coca-cola, James Quincey, has revealed how the carbonated company was able to offset the hit from the strong dollar after a 38 percent increase in its third-quarter profits.
Coca-cola grew its profit for the period under review to $2.6 billion while its revenue increased by 8 percent to $9.5 million.
According to Quincey, the growth in Profit and Revenue was driven by soda and smaller cans sales. This shielded Coca-cola from the impact of strong US dollar. He added, “We are taking hold with our consumers, customers and system.”
It was disclosed that both Coca-cola and it’s Zero sugar diet soda recorded impressive sales with the latter gaining another quarter of double-digit growth. Aside from its flagship product and the zero sugar diet soda, Coca-cola’s mini-cans also contributed to the company’s Q3 financial growth.
The mini-cans experienced higher sales which resulted in higher profit margins. Also, the cravings for ready-to-drink in Brazil boosted Coca-cola’s profit. It was reported that high demand for on-the-drink in the South American country led to the company distributing more than 100,000 coolers to the region.
The growth seems to have swayed Coca-cola to review its profit and revenue target for the full-year 2019 after the carbonated company raised its projection for-profit and operating income. However, Coca-cola reportedly maintained the projection for earnings per shares.
Coca-cola has also been expanding its portfolio in the market, launching a new coffee product in 20 markets. There is also a plan to introduce new energy drinks in the United States by 2020.
Note that Shares of Coca-cola rose 0.4 percent to $54.03 in pre-market trading.
Meanwhile, Investors King earlier reported that the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, had disclosed that there will be an imposition of excise duties on carbonated drinks, soft drinks and Value Added Tax (VAT).
“We are also looking at introducing excise duties on some categories of products especially carbonated drinks and VAT on some categories of imports into the country.”