Coca-Cola’s profit plunged 55 percent in the fourth quarter, rounding out what has been a tough year for the world’s largest beverage company.
Net income fell to $771 million in the quarter, down from $1.71 billion in the same period last year, the Atlanta-based company reported Tuesday. Earnings per share dropped 54 percent from 38 cents a share a year ago to 17 cents a share in the fourth quarter.
Despite the challenges, Coke beat Wall Street estimates. Excluding items, the company earned 44 cents per share; analysts had expected 42 cents.
Revenue was down 2 percent, from $11.04 billion in the fourth quarter of 2013 to $10.87 billion for the same period in 2014.
Coke attributed some of the challenges to non-cash charges related to refranchising in North America, costs associated with a $3 billion productivity program annoounced last year and changes to the exchange rate in Venezuela.
Coca-Cola announced in January that it was cutting up to 1,800 jobs globally — including about 500 in metro Atlanta — in the face of sluggish sales partly because of obesity concerns.
“We continue to see 2015 as a transition year as the benefits from the announced initiatives will take time to materialize amidst an uncertain and volatile macroeconomic environment,” Coke CEO Muhtar Kent said in a statement Tuesday. “We remain confident that we have the right strategies in place, and our associates and bottling partners are embracing these initiatives and are enthusiastic about the opportunity ahead.”
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