Coca-Cola Sales Beat Estimates As China Volumes Soar

Coca-Cola Co reported better-than-expected quarterly revenue as strong sales in China more than offset a drop in Europe and flat volumes in North America.

The company’s shares rose two per cent in premarket trading on Tuesday.

Global case volumes rose two per cent in the quarter, while those in China rose 12 per cent due to increased marketing around the Chinese New Year, the company said.

“Our North America Group delivered even volume versus the prior year quarter while gaining value share and maintaining volume share,” the company said in a statement.

North America is the company’s biggest market. Sales declined 4 per cent in Europe, but rose 6 percent in both India and Russia.

The company’s net income attributable to shareholders fell to $1.62 billion, or 36 cents per share, in the first quarter ended March 28 from $1.75 billion, or 39 cents per share, a year earlier.

Excluding items, earnings were 44 cents per share, matching the average analyst estimate.

Revenue fell four per cent to $10.58 billion. Analysts on average were expecting $10.55 billion, according to Thomson Reuters I/B/E/S.

Coca-Cola shares were up 1.9 per cent at $39.48 before the bell. The stock has fallen 3.5 per cent in the past year, lagging a 10.64 per cent increase in the broader Dow Jones Industrial Index.