Coca-Cola’s second-quarter profit dropped 3% as currency headwinds ate into the company’s bottom line, though the beverages giant reported modest worldwide volume growth.
Volume rose 3% overall, bolstered by gains for carbonated beverages, teas, packaged water and sports drinks. Worldwide Coca-Cola volume grew 1%, while volume increased 6% for Sprite and 2% for Fanta.
Notably, the Coca-Cola brand also grew 1% in North America. The largest soda companies in the U.S. Are facing pressure in their home market as demand for carbonated soft drinks—the biggest category in the beverages business—has posted industry volumes declines for nine straight years according to trade publication Beverage Digest.
For the latest quarter, Coke (KO) reported a profit of $2.6 billion, or 58 cents a share, down from $2.68 billion, or 59 cents a share, a year ago. Excluding various charges, adjusted profit rose to 64 cents a share from 63 cents. Net operating revenue fell 1% to $12.57 billion.
Analysts had expected an adjusted profit of 63 cents a share on $12.83 billion in revenue.
Diet sodas like Diet Coke and Diet Pepsi, seen as the industry’s savior, have especially struggled lately as some consumers worry about the sweeteners used in those products. Some are now looking toward sugar-free and aspartame-free sodas, and giant beverage companies like Coke are reportedly mulling new product launches while taking a cautious stance as they don’t want to hurt their existing portfolio.
Other initiatives seem to be progressing smoothly. Coke has a development deal in the works with Keurig Green Mountain (GMCR) to produce and sell single-serve pods for a cold-beverage system that is expected to dispense carbonated drinks, teas and other beverages.
Results from top rival Pepsi (PEP) are due on Wednesday.
