Coca-Cola profits take a knock

New York – Coca-Cola saw profits drop sharply due to sales of bottling facilities as it moved to expand offerings of low-sugar and noncarbonated beverages amid flagging demand for sweet sodas.

Net income for the US soft drinks giant plunged 60% in the second quarter to $1.4 billion (R18.3 billion), while revenues fell 16% to $9.7 billion. Both were hit by the company’s move to offload bottling assets.

Sales volume grew for three of four beverage categories: juice, dairy and plant-based beverages; water, enhanced water and sports drinks; and tea and coffee. But volumes were flat in sparkling drinks.

CEO James Quincey said Coca-Cola’s efforts to meet consumer demand for nonsweet and healthier offerings were on track. – AFP