Coca Cola Reports Record Breaking Earnings, Increased Price Led to Better Revenue

Coca Cola has officially submitted its quarterly earnings report and much to the surprise of analysts, the company has managed to break their expectations.

According to the report which was submitted on Wednesday, Coca Cola confirmed that they procured 41 percent of the revenue from international markets. The net income for all shareholders has increased by 71 cents per share in 2015. In the same month in 2014, the company sold each share for 58 cents and this is considered to be an unexpected level of growth that they have attained in a short period.

Coca Cola

A consensus estimate by Thomson Reuters confirmed that Coca Cola had made a profit of $12.16 billion which is slightly less when compared to previous year’s $12.57 billion. However, the amount of sales in global markets has increased by 2 percent which is much higher than what analysts predicted for the company earlier.

After a long break of almost two years, the company has reported an increase in their revenue in North America. Even though Coca Cola is able to make solid income from international markets due to fluctuating currency values, the unwavering value of the U.S. dollar constrains them from witnessing any drastic changes in the quarterly revenue.

Trade analysts have also confirmed that the manufacturer who promotes other drinks including Fanta and Sprite has been consistently reducing the cost of the drink in multiple regions. Their attempt to boost sales by decreasing cost per liter and increased investment in marketing campaigns have proven to be positive. The increased revenue is also being attributed to the strategy based on which Coca Cola promoted glass bottles after a long break that has a new found audience in health conscious regions.

Coca Cola

A wide range of special marketing campaigns have been initiated in the U.S., including the popular “Share a Coke” program. These special bottles had tags like ‘friend’ and ‘legend’ printed on them. Whenever users snap a picture of the bottle or a can and post it on their social media channels, they enter a draw to win special prices.

The idea worked to a good extent. Another significant change that Coca Cola adopted to boost sales is by increasing the cost of large bottles and traditional packages in the United States. The company reduced the cost of mini cans which is considered to be the most preferred way of drinking coke in the U.S. The current value of Coca Cola is at $41.30 per share.

Leave a Reply