Coca-Cola jumps after reporting better-than-expected profit
- Coca-Cola's stock jumped after reporting better-than-expected quarterly earnings.
- It was hit with a one-time tax charge of $3.6 billion.
- View Coca-Cola's stock in real time here.
The company earned an adjusted R4.53 ($0.39) per share, beating analysts' estimates of R4.42 ($0.38) per share.
However, the company was hit by a one-time charge of R41.85 billion ($3.6 billion) related to the new US tax laws, putting pressure on its sales. Coca-Cola said net operating revenue fell to R87.32 billion ($7.51 billion) from R109.41 billion ($9.41 billion) a year ago, though it was above analysts' expectations of R85.57 billion ($7.36 billion), according to Reuters data.
The company reported a quarterly net loss of R31.97 billion ($2.75 billion), or R7.56 ($0.65) per share, which was largely attributed to the tax charge.
Yet Coca-Cola's organic sales, or revenues derived from the company's existing operations, rose 6%, due to its non soda-related products, such as coffees, teas and vitamin water. The company is expanding its efforts to offer healthy drinks like coconut water and diet sodas in order to appeal to consumers' recent tastes.
The beverage company also recently completed its efforts to refranchise its bottling operations in the US, which the company believes will put less pressure on the company's margins as it moves from outsourced bottling companies to its own single system.
Coca-Cola's stock was trading at R530.80 ($45.65) per share. It was down 1.67% for the year