ATLANTA — Coca-Cola Co. posted declines in both profit and revenue for the third quarter, citing in part the effect of a strong dollar overseas.
The company’s core soda products remained under pressure in North America, meanwhile.
Global revenue slipped almost 5 percent in the quarter, to about $11.43 billion, the Atlanta-based beverage giant reported Wednesday. Profit dropped 32 percent to $1.45 billion.
The company blamed currency fluctuations abroad for its woes, warning that it expects the conditions to persist, causing revenue to dip 7 percent and profit to be off 11 percent. When the dollar is strong, revenue generated overseas is worth less in U.S. currency.
In North America — Coke’s biggest market — overall volume grew 1 percent, but that was powered by a 7 percent gain in sales volume of waters, teas and juices. Soft drinks, which continue to be under the gun from changing consumer habits, lagged, with volume falling 1 percent.
Diet Coke fell 9.5 percent, regular Coke fell 3 percent, and Coke Zero slipped 4 percent in North America.
Globally, soda volume was up 1 percent, including a 1 percent jump for regular Coke and 8 percent growth for Coke Zero. Diet Coke fell 8 percent even with global sales included.
“This is principally a dynamic in the U.S.,” Coke President James Quincey said.
Coke CEO Muhtar Kent added that the company is working to cut the rate of decline for Diet Coke with improved advertising and by addressing misconceptions Coke says consumers have about healthiness.
The report came as Coke works to retool its bottling network and trim costs through cuts at its Atlanta headquarters and elsewhere. It’s also pushing smaller cans and bottles in North America to appeal to more health-conscious consumers.
Mike Musso, a managing director at Conway MacKenzie Inc. and leader of the financial advisory firm’s consumer packaged goods practice, said the company “is taking aggressive steps in the short-term to manage profitability and shareholder value.”
“The long-term issues for Coke are far more difficult,” he added. “Carbonated soft drinks, as a whole, are now in its second decade of declining consumption, and that is the critical issue for Coke. It’s a macro industry issue and that needs to be addressed.”
