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Coca-Cola profits bubble on strong sales

In the 2007 fourth quarter, net profit soared 79 percent from a year ago to 1.21 billion dollars, or 52 cents per share. The year-on-year increase reflected exceptional elements, the company said.

Excluding those elements, earnings per share rose to 58 cents, a gain of 14 percent from the final quarter of 2006.

Fourth-quarter sales jumped 24 percent on a 12-month basis to 7.33 billion dollars.

The results far exceeded analysts’ consensus forecast of EPS of 55 cents on sales of 7.01 billion dollars.

For the entire year, Coca-Cola reported net profit of 5.98 billion dollars, or 2.57 dollars per share, an 18 percent advance from 2006. Excluding exceptional items, the per-share profit was 2.70 dollars, up 14 percent from the prior year.

Full-year sales climbed 20 percent to 28.85 billion dollars from 2006.

Earnings per share missed market expectations of 2.67 dollars, while sales beat forecasts of 28.41 billion dollars.

The Atlanta, Georgia-based beverages giant reported sales increases across all its operating regions, although the North American market showed only a slight rise, and in all its products.

By volume, sales rose by five percent in the fourth quarter and by six percent in 2007. International sales in the fourth quarter increased by seven percent by volume on double-digit gains in emerging countries such as China, India, Brazil, as well as in Turkey, the Middle East and Europe-Asia. North American sales edged up by one percent.

In the final three months of 2007, carbonated beverage sales rose four percent by volume, led by brand stars Coca-Cola, Fanta and Sprite.

Non-carbonated beverages, however, sparkled, with sales by volume shooting up 11 percent on the success of Dasani mineral water, Powerade sports drink and Minute Maid fruit juices.

Goldman Sachs said the stronger than anticipated earnings were driven by “solid underlying beverage consumption trends in international markets, a big swing in company owned bottlers (COBOs), and greater forex benefit than we expected.”