Coca-Cola has reported soaring profits ahead of expectations in 2010, largely due to a revitalized North American market and the buyout of its main bottler last year.
The Atlanta, Georgia based drinks maker enjoyed worldwide growth of 6 percent in the fourth quarter and 5 percent for the whole year.
Fourth-quarter profit more than tripled to $5.8 billion, from $1.5 billion in the same period a year earlier, pushing earnings per share to $2.46. The average analyst estimate was 72 cents.
Worldwide sales rose 6.0 percent in the quarter, with sales in North America rising 8.0 percent, pushing revenue to a 39 percent leap in the October-December period to $10.5 billion.
The acquisition of the North American bottling business of Coca-Cola Enterprises resulted in a $5.0 billion one-time gain, the company said.
For the whole year 2010, profit was up 73 percent to $11.8 billion, with earnings per share of $5.06, better than the $3.49 expected. Annual sales rose 13 percent to $35.1 billion, also exceeding estimates.
Coca-Cola achieved volume growth in the quarter across each of its five geographic operating groups, with growth of 14 percent in Eurasia and Africa, 5 percent in Latin America, 2 percent in Europe, 1 percent in Pacific and 8 percent in North America, its third consecutive quarter of organic growth.
Worldwide volume growth was led by the Coca-Cola brand itself, up 4 percent in the quarter and for the full year. Global volume and value share was also gained in total nonalcoholic ready-to-drink (NARTD) beverages and across both sparkling and still beverages in the quarter and for the full year.
Worldwide still beverage volume increased 9 percent in the quarter, led by growth across the portfolio, including juices and juice drinks, sports drinks, teas and water brands.
Still beverage volume in the quarter increased 11 percent internationally and 7 percent in North America with the continued strong global performance of sports drinks, driven by Powerade (+12 percent).
Sports drink growth in the quarter was balanced across key geographies, led by North America (+20 percent), South Korea (+43 percent), South Africa (+21 percent) and Mexico (+14 percent) benefitting from Coca-Cola’s FIFA World Cup sponsorship.
"Now, as we enter 2011, we do so with solid momentum,” said Muhtar Kent, chairman and chief executive. “This year marks the 125th anniversary of Coca-Cola, and the second year of our 2020 Vision, and we see opportunities as exciting as our predecessors must have seen back in 1886.
