Coca-Cola Posts Loss From Tax Charge
By Cara Lombardo
Coca-Cola Co. (KO) posted a loss for its latest quarter as it booked a one-time charge related to the new tax law. A continuing overhaul of its bottling system dented revenue.
The Atlanta-based company's fourth-quarter revenue decreased 20% to $7.5 billion from a year earlier as it continued to refranchise its bottler operations. But organic revenue, which excludes currency swings, acquisitions and divestitures, rose 6%.
Drink volumes were flat from a year ago. Coke's tea and coffee and water and sports drinks volumes increased slightly, while carbonated drink volumes were flat and juice and dairy beverage volumes dropped 2%.
Coke reported a loss of $2.8 billion, or 65 cents a share, compared with net income of $550 million, or 13 cents a share, the year before. The loss included a $3.6 billion charge, which included a repatriation charge and deferred tax benefit related to the new U.S. tax law.
Excluding items, the company earned 39 cents a share, up from 37 cents a share in the year-earlier period. Analysts had expected adjusted earnings per share of 38 cents.
Shares, up 9% in the past year, rose 1.6% in premarket trading.
The company guides 2018 organic revenue growth of 4%.
Write to Cara Lombardo at email@example.com
(END) Dow Jones Newswires
February 16, 2018 07:40 ET (12:40 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.