Coca-Cola Profit Rises 20% as Latin America Advances (Update2)

April 20, 2010, 4:12 PM EDT
By Duane D. Stanford

April 20 (Bloomberg) -- Coca-Cola Co., the world’s largest soft-drink maker, said first-quarter profit rose 20 percent, bolstered by sales in Latin America.

Net income increased to $1.61 billion, or 69 cents share, in the quarter ended April 2 from $1.35 billion, or 58 cents, a year earlier, the company said today in a statement.

Revenue rose 5 percent to $7.53 billion, the company said. Eight analysts predicted $7.72 billion, on average. Global sales by drink volume grew 3 percent, helped by a 4 percent increase in Latin America. Sales by drink volume in North America declined 2 percent.

Coca-Cola is seeking to boost revenue and volume as consumers recover from a global recession. Sales have bounced back faster in emerging markets than in larger markets including the U.S., Coca-Cola said.

Shares of the Atlanta-based company fell 85 cents to $54.47 at 4 p.m. in New York Stock Exchange composite trading. The stock has dropped 4.4 percent this year, while Purchase, New York-based PepsiCo Inc. gained 8.4 percent and the Standard & Poor’s 500 Index rose 8.3 percent. PepsiCo plans to announce first-quarter earnings April 22.

Earnings excluding some items totaled 80 cents a share, Coca-Cola said. Analysts predicted 74 cents, the average of 12 estimates compiled by Bloomberg.

The company also named Steve Cahillane, president of Coca- Cola Enterprises Inc.’s North America unit, to run a new bottling and foodservice division when it combines with Coca- Cola later this year.

Cahillane, who joined Coca-Cola Enterprises in 2007, will become president and chief executive officer of Coca-Cola Refreshments Inc. The bottling unit will include Minute Maid juices and supply chain operations.

Coca-Cola expects to complete the purchase of CCE in the fourth quarter. Coca-Cola North America President Sandy Douglas will retain that role. Both will report to Chairman and Chief Executive Officer Muhtar Kent.

(Coca-Cola held a conference call at 9:30 a.m. New York time to discuss results. For a replay, see {EVTS <GO>}.)

--Editors: Andrea Snyder, Andrew Dunn

To contact the reporter on this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net

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