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Global sales by The Coca-Cola Company rose 21% to $7.38 billion in the first quarter of 2008, driven by strong growth in international markets, Coke reported today (16 April). The company’s earnings were 19% up at $1.5 billion or $0.64 per share, including a $0.03 per share charge related to restructuring costs and asset write-downs.
"We have begun 2008 successfully, with another solid quarter consistent with our overriding objective of creating long-term sustainable growth," said Chairman and Chief Executive Neville Isdell, who is due to hand over his CEO role to President and Chief Operating Officer Muhtar Kent in July.
"Our system’s success in executing our strategies – from marketing and beverage innovation to effective execution at the point of sale – continues to drive our growth. Importantly, our growth was again balanced, proving our ability to manage our portfolio of brands and geographies over time to deliver results.
“As Muhtar assumes executive leadership of our company, I am confident that the strategies and programmes that we together have put in place will continue to deliver long-term sustainable growth and value to our shareowners."
Muhtar Kent added: “Our international business once again led the way, with both sparkling and still beverages contributing to our results. We do recognise there is still much more work to be done, especially in our flagship North America market with its challenging economic environment.
"I remain optimistic about the progress we are making and committed to continued improvement in the execution of our strategies. Even in the face of a difficult macroeconomic climate, I believe that by continuing to collaborate with our bottling partners and maintaining an unrelenting focus on integrated consumer marketing and commercial and franchise leadership, we will achieve another successful year for The Coca-Cola Company."
Coke’s total case volume increased 6% in the quarter, with acquisitions contributing 2 points of growth. International volume was up 7%, with double-digit growth in key emerging markets including China, India, Brazil, Turkey, Russia, Eastern Europe and the Philippines.
European Union volume increased only 3%, after double-digit growth in the first quarter of 2007. North American volume was flat, “reflecting the challenges in the US economy.”