Coca-Cola's profit fell 7.5 percent in the first quarter

SAO PAULO-the Coca-Cola Company registered a fall of 7.5% in its net profit during the first quarter compared to the same period in 2013. The figure stood at $ 1.62 billion, impacted mainly by smaller gains from sales.
NET closed the period at $ 10,58 billion, with fall of 4.2 percent on the same comparison. The most responsible for this reduction was the exchange rate — the devaluation of currencies against the dollar reverted in 4 percentage points high in turnover.
Beverage maker expects the exchange rate drop by approximately 7% its operating results during 2014, judging from current quotes. Much of the loss will be recorded on the system change of Venezuela, which caused strong devaluation of the Bolivar.
Increased volume
On the other hand, the American group reported that the sales volume of your drinks was 2% higher around the world in the quarter. Between January and March, the largest increase was observed in Asia and the Pacific, of 7%. Also demonstrated growth activities in Eurasia and Africa, of 2%, and in Latin America, of 1%. The European operation lost 4%.
"Our expansion trend is improving gradually, in line with our expectations," said Muhtar Kent, President of Coca-Cola. "We will accelerate investments in sales and marketing of our brands, focusing on best execution possible partnerships with the associated bottlers".
In Latin America, two of the largest beverage bottlers of company are Coca-Cola, Chile's Andes, and Coca-Cola Femsa, Mexico 's. Together, the two have a relevant participation in the Brazilian market.
The balance sheet published today also shows that the American was able to reduce its costs of products sold at 5.6%, to $ 4.08 billion, while cut General and administrative expenses at 4.6%, to $ 3.99 billion. The operating profit fell 1.3% to $ 2.38 billion.
On the other hand, Coca-Cola faced worsening in its financial operations during the quarter. High in the provisions for payment of taxes on the profit also dropped the last line of the balance sheet.