Coca-Cola's sales fall 4% in the third quarter in Brazil

The Coca-Cola Company, released yesterday, shows that the volume of sales in the Brazilian market fell 4 percent in the third quarter, as compared to the same period last year. On the world market, sales rose 3 percent and in Latin America there has been 2% expansion.
The economic crisis that affects the purchasing power of households in Brazil affected the result. The company reported that "the current scenario of the Brazilian economy affects the performance of most sectors of the national industry, including drinks, impacted by factors such as rising unemployment and high inflation, that create uncertainty in the population and strong deceleration in household consumption".
In Latin America there was 8% in the high volume of sales of juices and double digits in sports drinks. The advance was driven by Mexico and South America, except Brazil, where there was no retraction.
Despite the poor performance in the country, Coca-Cola said that Brazil "will not change its plan of investments of R $ 2.7 billion only in 2015. The company had already accelerated investments to the five-year period from 2012 to 2016, with R $ 14.1 billion, 50 percent more than in the previous period.
In the last quarter the volume of worldwide sales of soft drinks grew 2%, while soft drinks rose 6% in the same period. The Sprite and Dasani brands (of water), were the most affected by the exchange rate, since most of their profit comes from outside the United States. In the last quarter, the American currency appreciation caused 12 percentage point impact on earnings per share. The balance sheet 31% drop also pointed in profit, to $ 1.45 billion. In the same period last year had income added $ 2.1 billion.
The balance sheet shows that the revenue fell 4.6 percent in the period, above analysts ' estimates fall to $ 11,4 billion. Indentation larger than expected was provoked by the stronger dollar in the international market, despite the improvement in sales. Coke generates most of its profit from sales outside the United States.
The result press the world CEO Muhtar Kent to maintain an aggressive cost-cutting program and increased productivity. Among the measures is the improvement of distribution in Africa, Europe and the USA.
The balance sheet data consider soft drinks, juices, isotonic drinks and bottled water.