Coca-Cola overhaul keeps profit bottled up

Net revenue fell 15 per cent last quarter, affected by so-called refranchising effort

NEW YORK— Coca-Cola Co.’s push to offer more low-calorie drinks is showing signs of paying off, even as the beverage giant’s sweeping over- haul weighs on results.

The company posted operating sales that handily beat analysts’ estimates in the third quarter. Profit also topped projections by a penny a share, with higher drink prices giving a boost to earnings.

But overall revenue was down in the period, hurt by a move to off-load bottling operations, and sales volume growth has stalled. CEO James Quincey has been working to slim down the company, a campaign that centres on shedding the bottling operations around the world. The 52-year-old, who took the helm in May, has vowed to cut costs by an additional $800 million (U.S.).

“I am encouraged with our progress,” Quincey said in a statement.

The company is “focused on delivering against its financial commit- ments while also making substantial structural and cultural changes.”

Net revenue dropped 15 per cent last quarter, hurt by the so-called refranchising effort — its push to spin off bottling operations. Organic sales, which strip out items, grew 4 per cent. Coca-Cola expects growth on that basis to be 3 per cent this year.

Coca-Cola reported earnings of 50 cents a share in the third quarter, compared with a 49-cent average estimate of analysts. Operating revenue came in at $9.06 billion, topping the $8.72-billion projection.

On Wednesday, the company reported net income of $1.45 billion, or 33 cents per share, in the three months ending Sept. 29. That’s up from the $1.05 billion, or 24 cents per share, in reported in the same quarter a year ago.