Coca-Cola global results

The new Coca-Cola One Brand label, released earlier this year.

The Coca-Cola Company intends to continue expansion of its Zero Sugar product brand in Australia this year, as well as in European markets and South Africa.

The 2016 full year report, released last week, stated the company had advanced its strategy for growing the sparkling beverage portfolio while helping consumers to reduce sugar consumption, and that this would continue in early 2017.

Coca-Cola’s 2016 full year report also blamed unfavourable currency pressures and structural changes for a decline in global net revenue.

Down five per cent for the full year and six per cent in the final quarter over all markets, net revenues grew in the North American market by eight per cent in the final quarter.

Coca-Cola Company CEO and chair Muhtar Kent said he was pleased with top and bottom line growth in the flagship market, which countered “macroeconomic pressures” in emerging and developing markets.

“Our flagship market of North America grew net revenues eight per cent for the quarter and four per cent for the year, outperforming total retail value growth for both the North America nonalcoholic ready-to-drink beverage industry and U.S. consumer packaged goods companies,” he said.

Gross profit dropped six per cent, from $US5.9 billion in 2015 to 5.6 billion, and the cost of goods sold fell from $US4 billion to $US3.8 billion. Total unit case volume grew by one per cent for the full year, as was the case in North America.

The company also used the report to flag Muhtar Kent’s recommendation of James Quincey to become the next CEO, expected to take the role in May, after nomination at the annual shareholders’ meeting in April.

Coca-Cola has also pledged to contribute to $US22 million in support for the next 5-year phase of USAID’s Water and Development Alliance, which between 2005 and 2017 has funded 35 projects in 30 different countries, improving water access to more than 600,000 people.

Coca-Cola’s Australian bottling arm, CCA, will release it’s full-year results on Wednesday, February 22.

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