COCA-COLA Co, the world's largest soft-drink maker, posted first-quarter profit that rose more than analysts estimated as sales in Latin America and Russia advanced.
Net income climbed to US$1.5 billion, or 64 cents a share, from US$1.26 billion, or 54 cents, a year earlier, the Atlanta-based company said yesterday. Excluding costs to write down assets, earnings beat analysts' estimates by four cents a share.
Coca-Coca also benefited from the dollar's decline. Chief Executive Officer Neville Isdell has appealed to regional tastes, opening a research and development center in China and adding herbs and vitamins to juices, teas and sodas. Last year's purchase of Glaceau Vitaminwater helped counter slowing US soft-drink sales.
"He has lowered expectations, invested in marketing to drive better volume and better earnings growth, and that's paying off," John Faucher, an analyst with JPMorgan Securities Inc in New York, said in an interview. "The upside on this quarter based on currency is due more to the very diverse geographic nature of their business." Faucher recommends buying the stock.
Excluding costs to write down assets, the soft-drink maker earned 67 cents a share, compared with 13 analysts' average estimate of 63 cents in a Bloomberg News survey.
Revenue rose 21 percent to US$7.38 billion in the three months ended March 28.
Coca-Cola advanced 79 cents, or 1.3 percent, to US$61.73 in early sales before the start of New York Stock Exchange composite trading. The stock has declined less than 1 percent this year, compared with a 6.2-percent drop for PepsiCo Inc, the world's second-largest soda maker.
Revenue gains have been fueled outside the US, where Coca-Cola gets almost three-quarters of its sales versus two-fifths for PepsiCo.
Coca-Cola promoted Minute Maid Pulpy, a watered-down orange juice, in China, and mango-flavored Maaza in India.
Coca-Cola bought Energy Brands Inc's Vitaminwater, based in Queens, New York, for US$4.1 billion last year to offset falling sales of Coca-Cola Classic in the US.
The soft-drink maker marketed the vitamin-enhanced drink in Australia, its first international foray. Coca-Cola also plans to expand Vitaminwater to Britain later this year.