Shares of multinational soft drinks group Coca-Cola Co (NYSE:KO) enjoyed some fizz on Tuesday as fourth quarter earnings landed better than expected and helped the stock buck the trend of declining Wall Street tickers.
The world’s largest soft drinks company reported better-than-expected profits, despite falling sales as a result of currency fluctuations. Net profits jumped by 61% to US41.24bn versus the same period a year ago and represented 28 cents a share, in the last three months of 2015.
But operating revenue fell by 8% to US$10bn as a stronger dollar bit conversion. The dollar had been rising since mid-2015 on growing expectations - realised in December - of a US Federal Reserve rate hike.
The company said the core "Coke" brand remains strong, but the appetite for the lower sugar content variety, Diet Coke, is beginning to wane.
Shares were last seen up 0.2%, or 7 cents, at US$42.72.