Weighed down by structural changes, currency headaches and soft volume growth, Coca-Cola (KO) revealed weaker-than-expected second-quarter sales on Tuesday and a decline in profit.
The Atlanta-based soft-drink maker reported net income of $2.7 billion, or 59 cents a share, compared with a year-earlier profit of $2.8 billion, or 61 cents.
Excluding one-time items, Coca-Cola said it earned 63 cents, matching average analyst estimates in a Thomson Reuters poll.
Revenue for the three-month period ended June 28 fell 3% to $12.75 billion from $13.09 billion a year ago, missing the Street’s view of $12.96 billion. Volumes were up just 1%.
“Our second quarter volume results came in below our expectations, reflecting an ongoing challenging global macroeconomic environment and unusually poor weather conditions in the quarter,” Coca-Cola CEO Muhtar Kent said in a statement.
Structural changes weighed on margins, including the deconsolidation of its bottling operations in the Philippines, which Coca-Cola is partially blaming for an expected 3% decline in 2013 revenues.
Shares of Coke slumped 2.7% in early trade to $39.90.
Kent said Coca-Cola remains committed to improving the results and believes the company is on track for better performance in the second half of the year.
A bright spot for the soda maker during the quarter was the continued improvement in its nonalcoholic ready-to-drink beverages group, where the company continued to gain market share, particularly in North America.