The Coca Cola Co. (NYSE: KO) reported its financial results for the fourth quarter of 2016 with both earnings and revenues dropping. According to the company, revenue declined 6% to $9.4 billion for the fourth quarter of 2016, but beat estimates of $9.13 billion. The results include 2% decline caused by foreign exchange rate and 10% drop due to corporate deals and one-time items. However, the organic revenue, which is a measure of the growth of company’s core business, increased 6% in the last quarter. The rise in organic revenue was mainly due to price increases and sales of more lucrative items.
Net income decreased 56% to $550 million, or $0.13 per share in the fourth quarter, which was down from $0.28 the same period last year. Excluding certain items, Coca-Cola earned $0.37 per share, which was in line with the estimates.
“We are pleased to report that we ended 2016 with fourth quarter top- and bottom-line growth within our expectations. Strong price/mix stemming from our continued focus on driving revenue and solid performance in our developed markets helped offset persistent macroeconomic pressures in our emerging and developing markets,” said Muhtar Kent, the current CEO of the company.
In the report, the company also announced that James Quincey, the company’s president and chief operating officer, would be the next CEO, effective May 1. “Having worked closely with James for many years, I know that his knowledge and experience make him the ideal candidate to lead our Company and bottling system into the future. I am partnering with James to ensure a smooth CEO transition and look forward to providing continued support as Chairman of the Board of Directors,” Kent said.