Coca-Cola (KO) has had to contend with higher raw materials prices this year, which have cut into margins and caused the company to raise prices. Nonetheless, the company was able to post volume growth in the third quarter. Shares fell 0.5% in early trading.
Coke posted 95 cents of EPS, against expectations for $1.02. Restructuring charges and costs from a new productivity initiative reduced earnings by 8 cents.
Gross margin, however, fell to 60.2% from 65.4%. North American and worldwide volumes were both up 5%. North American volumes were boosted by particularly strong demand for Dr. Pepper, which Coke cross-licenses. Prices for Coke beverages rose 2% for North American retailers, which may have curbed volume growth.
Coca0-Cola also said it will increase its buyback authorization to $3 billion this year, up from $2.5 billion.
No comments:
Post a Comment