Coca-Cola Q4 net revenue declines 6%
Soft drinks giant Coca-Cola has reported a 6% decline in net revenue to $9.41bn for the fourth quarter of 2016, compared to $10bn for the same period in 2015.
The full year’s net revenue in 2016 decreased to $41.9bn compared to $44.3bn in the earlier year.
Coca-Cola has attributed the revenue decrease to impact from the foreign currency exchange headwind, 2% in the fourth quarter and 3% for the full year.
Additionally, the soft drink company has also blamed the headwinds caused by acquisitions, divestitures and structural items by 10% and 6% for Q4 2016 and FY 2016 respectively.
Coca-Cola chairman and CEO Muhtar Kent said that the Q4 2016 results were within the company’s expectations.
Kent added: “Strong price/mix stemming from our continued focus on driving revenue and solid performance in our developed markets helped offset persistent macroeconomic pressures in our emerging and developing markets.
“Our flagship market of North America grew net revenues 8% for the quarter and 4% for the year, outperforming total retail value growth for both the North America nonalcoholic ready-to-drink beverage industry and U.S. consumer packaged goods companies."
Coca-Cola’s organic revenues (Non-GAAP) surged 6% in the fourth quarter while there was a 3% increase for the full year 2016.
Gross profit for Q4 was $5.6bn compared to $6bn for the same period in 2015, representing a decline of 6%. For the full year 2016, gross profit went down by 5% from $27bn of FY 2015 to $25.4bn.
As far as the total unit case volume is concerned, the fourth quarter had declined by 1% while it managed to grow by 1% in the full year 2016.
Image: The Coca-Cola Company has released its Q4 2016 and FY 2016 results. Photo: courtesy of Amy Sparks.