Coca-Cola (KO) reported lower-than-expected quarterly revenue, citing difficult conditions in many of its emerging and developing markets.
Shares of the world’s largest beverage maker, which also cut its full-year organic revenue growth forecast, were down 2% in premarket trading on Wednesday.
“Strong performance in some of our largest and most developed markets, including the United States, Mexico and Japan, was offset by difficult external conditions in many of our emerging and developing markets, including China and Argentina,” CEO Muhtar Kent said in a statement.
The company said it now expects full-year organic revenue to grow 3% in 2016, down from its previous forecast of 4-5% growth.
Revenue from North America, the company’s largest market, rose 2%, while it fell in all other regions, partly hurt by inflation.
However, net income attributable to shareholders rose to $3.45 billion, or 79 cents per share, in the second quarter ended July 1 from $3.11 billion, or 71 cents per share, a year earlier.
Excluding items, the company earned 60 cents per share.
The company’s net operating revenue fell 5.1% to $11.54 billion, the fifth straight quarter of decline.
Analysts on average had expected earnings of 58 cents per share on revenue of $11.63 billion, according to Thomson Reuters I/B/E/S.
Coca-Cola also said it signed letters of intent with two U.S. Bottlers to expand distribution areas in two states.