The world's largest soft-drink maker, The Coca-Cola Company, reporting its 2005 financial results, Tuesday said India, along with Philippines and northwest Europe, turned out to be the party spoiler for the growth in unit case volume, offsetting an increase of 4 per cent in the fourth quarter and for the full year.
The Atlanta-based beverages giant Tuesday filed its 2005 financial results with the Securities and Exchange Commission in the US, before the stock markets opened for trading.
Globally, the company reported that for the first time in its history annual units case surpassed the 20 billion milestone. Though country-wise volume sales were not available immediately, the company said unit case volume growth in the fourth quarter (ending December 2005) was led by continued strong growth in key emerging markets, including China, Russia, Brazil and Turkey.
"In addition, both North America and Latin America delivered another solid quarter of unit case volume growth, and Germany delivered mid single-digit growth for the first time since 2003. Offsetting these results were unit case volume declines in the Philippines, India and northwest Europe," the company said.
However, the east, south Asia and Pacific Rim operating group's unit case volume declined 1 per cent in the fourth quarter and 4 per cent for the full year. "Unit case volume declines in India and the Philippines impacted results for both the quarter and the full year," the company said.
In India, unit case volume decreased mid single-digit in the quarter compared to the prior year quarter, but improved versus the prior three quarters due to easing comparisons and the benefit of double-digit non-carbonated beverage growth.
Net revenues for the full year decreased 1 per cent, reflecting a 6 per cent decline in gallon sales, offset by a slight currency benefit and positive pricing and product mix. Operating income was further reduced for the full year due to the planned increase in marketing expense and the non-cash charge for asset write-downs in the Philippines in the third quarter of 2005.
The company reported a 28 per cent drop in fourth-quarter profit on higher marketing costs and charges to repatriate foreign earnings. But excluding one-time items, earnings beat the analysts' average forecast by 2 cents a share, helped by higher-than-expected revenue.
The Atlanta-based company, which rolled out a flurry of new products in 2005 and plans to keep up the tempo in 2006, said operating income fell 6 per cent on the planned double-digit increase in marketing and new product development.
Net earnings declined to $864 million, or 36 cents a share, from $1.2 billion, or 50 cents a share, a year earlier.
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