Coca-Cola Co. reported a bigger-than-expected drop in quarterly sales due to a strong dollar and the company said it expected the currency to hurt its full-year revenue more than previously anticipated.
The cola maker, which gets more than half of its total revenue from markets outside North America, said a strong dollar would lower its full-year revenue by 7 percentage points compared with 6 percentage points estimated earlier.
The dollar has risen 12% against a basket of major currencies in the past year. The company's shares fell about 1% to $42 in early trading on Wednesday. Coca-Cola third-quarter sales fell 11% in Asia-Pacific, 14% in Latin America and 7 percent in Europe.
Revenue from North America, its biggest market, rose 1%, helped by higher pricing and expanded distribution of Monster Beverage Corp's energy drinks. Coca-Cola's global sales volume rose 3%, driven by non-carbonated beverages such as ready-to-drink teas and juices.
Rival PepsiCo Inc. reported better-than-expected quarterly profit and sales this month as its commodity costs fell and demand for its snacks and non-carbonated beverages rose in North America.
Coca-Cola said last month it planned to sell nine production facilities, valued at about $380 million, to three of its largest independent bottlers as it seeks to unload low-margin assets and reduce manufacturing costs in the United States.
The company said on Wednesday it signed letters of intent with three U.S. bottlers to expand distribution areas in seven states.
Coca-Cola's net operating revenue fell nearly 5% to $11.43 billion in the quarter ended Oct. 2. Its organic revenue, which excludes the impact of currency movements and mergers and acquisitions, rose 3%.
Net income attributable to shareholders fell 31.3% to $1.45 billion, or 33 cents per share.
Excluding items, Coca-Cola earned 51 cents per share.
Analysts on average had expected a profit of 50 cents per share and revenue of $11.54 billion, according to Thomson Reuters I/B/E/S.