Atlanta-based The Coca-Cola Co. reported its second quarter 2016 operating results. Reported net revenue declined 5 percent, while organic revenue grew 3 percent, according to the company. Global volume year-to-date grew 1 percent and was even for the quarter, it added. The company also gained global value share in the non-alcohol ready-to-drink beverage market, it says.
Muhtar Kent, chairman and chief executive officer said in a statement: “Despite challenging macroeconomic conditions, structural changes and foreign exchange headwinds which contributed to a 5 percent decline in reported revenues, we delivered 3 percent organic revenue growth, gained value share in total nonalcoholic ready-to-drink beverages, expanded our operating margins and grew profits in line with our expectations. Strong performance in some of our largest and most developed markets, including the United States, Mexico and Japan, was offset by difficult external conditions in many of our emerging and developing markets, including China and Argentina. These factors combined to put pressure on our volume and top-line performance in the quarter, especially where we own bottling businesses. In these international operations where external headwinds have proven to be more severe than originally forecast, we are taking action by reassessing local market initiatives where needed and continuing our efforts in driving productivity.
“As we continue the transformation of our business, I am encouraged by our core business performance which grew ahead of our consolidated organic revenues in the quarter,” he continued. “We expect this to continue for the balance of the year as we remain confident in our segmented revenue growth strategy, our innovation pipeline, and efforts to increase and improve our advertising.”
For full-year 2016, the company says that organic revenues now are expected to grow 3 percent, while full-year comparable currency neutral income, before taxes, remains at the expected 6 to 8 percent growth, it states.