Coca Cola Co reported better-than-expected results for the first quarter of this year. The enhanced results have been contributed to the increase in sales units for the soft drink manufacturing giants.
Coca Cola Co saw an increase in sales volume by 3% in Germany and Japan, 6% in Spain and 1% within the United States. This increased sale indicates that the economy is improving and the public spending has increased as a result of that.
As for United States, CEO, Muhtar Kent stated, “Despite its (Coca Cola Co’s) struggle with a sustained period of relative high unemployment, we are pleased to see some early signs of a slowly improving macroeconomic environment”. “As we move through 2012, we anticipate that our business in China may not be immune to this cooling economy and therefore, we may also see some of our volume results in China moderate to some extent,” Kent said. He added that results in Brazil should remain steady as that country’s economy recovers.
The CEO was of the view that the performance in China may not improve because of slow economic growth within the country.
Coca Cola’s first quarter net profit rose by an approximate figure of 8% with its reported net profit for the first quarter being $2.05 billion (89 cents per share) as compared to $1.90 billion (82 cents per share), a year earlier.
Coke shares were up $1.45, or 2 percent, at $73.89 in morning trade on the New York Stock Exchange.