Coca-Cola announced on Friday that its third-quarter profits increased by 38% as the company’s gain rose to $2.6 billion.
Chief Executive Officer of the company, James Quincey, explained that it was the solid sales of soda and innovative products like smaller drink cans that offset the hit from a strong dollar.
He said, “We are taking hold with our consumers, customers and system. Our profits rose 38 percent to $2.6 billion, off of an 8.3 percent increase in revenues to $9.5 billion.”
The company scored higher sales of its flagship Coca-Cola and notched another quarter of double-digit growth in Coca-Cola Zero Sugar diet soda.
Results were also boosted by increased sales of smaller 7.5-ounce mini-cans that enjoy higher profit margins and by initiatives such as distributing more than 100,000 coolers in Brazil to take advantage of strong demand for immediate consumption drinks.
The company undertook an international launch of a new coffee product in more than 20 markets and said it plans to introduce new energy drinks in the United States next year.
Coca-Cola raised its full-year targets for revenues and operating income but maintained the projection for earnings per shares. Shares rose 0.4% to $54.03 in pre-market trading.
Back home: Meanwhile, Nairametrics had reported that the Nigerian Bottling Company (NBC), Rite Foods Plc and other manufacturers of carbonated drinks might have to start paying excise duties as the Federal Government identified new streams of revenue to help boost its revenue base.
This was announced by the Minister of Finance, Budget and National Planning, Zainab Ahmed on the sidelines of the World Bank/International Monetary Fund meetings holding in Washington DC, United States.
Ahmed made it known that since the Value Added Tax increase had been proposed, other streams of revenue the government was considering include the introduction of excise duties on carbonated drinks.
Carbonated drinks include soft drinks like Coca Cola, Fanta, Bigi and excise duties are taxes levied on locally produced goods. Nairametrics understands that currently, excise is placed on non-alcoholic beverages, fruit juices, beer, stout and alcoholic beverages as shown on the website of the Nigeria Customs Service.