(RTTNews) - Coca-Cola Co. (KO) reported a profit for the third-quarter that declined 28 percent from the prior year. Net revenues were down 7% from prior year, impacted by a foreign currency exchange headwind of 2% and a headwind from acquisitions, divestitures and structural items of 8%. The company reaffirmed organic revenue and comparable earnings per share outlook for fiscal year 2016.
Both adjusted earnings per share and revenue for the quarter beat analysts' expectations.
In the pre-market trade, KO is trading at $43.30, up $0.76 or 1.79 percent.
The company said it remains on track to deliver more than $600 million of productivity in 2016 by scaling initiatives and embedding zero-based work into daily routines.
The company continues to expect comparable currency neutral income before taxes (structurally adjusted) to grow 6% to 8% in 2016. The net impact of structural items is expected to be a 4 point headwind, and based on the current spot rates, currency is expected to be an 8 to 9 point headwind, including the impact of hedged positions for the full year.
The Company still expects full-year 2016 comparable earnings per share to be down 4% to 7% versus prior year's comparable EPS of $2.00.
The Company still expects organic revenues to be up 3% in 2016. The net impact of acquisitions, divestitures and structural items on net revenues is expected to be a 6 to 7 point headwind, and based on the current spot rates, currency is expected to be a 2 to 3 point headwind, including the impact of hedged positions for the full year.
Net income attributable to shareowners of the company for the third-quarter dropped 28 percent to $1.05 billion from the prior year's $1.45 billion, with earnings per share declining to $0.24 from $0.33 last year.
Comparable net income attributable to shareowners of the company dropped to $2.15 billion or $0.49 per share from $2.23 billion or $0.51 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items.
EPS was $0.24. Items impacting comparability decreased reported EPS by a net $0.25 and were primarily related to non-cash charges associated with the refranchising of bottling territories in North America.
Net revenues were $10.63 billion, a 7% decline from prior year, impacted by a foreign currency exchange headwind of 2% and a headwind from acquisitions, divestitures and structural items of 8%. Wall Street expected revenues of $10.54 billion for the quarter.Organic revenues grew 3%, evenly split between volume and price/mix growth.
The company reported that beverage unit case volume grew 3%, primarily driven by water and sports drinks.