Coca Cola's Q1 revenues rise despite currency headwinds and "volatile" macroeconomic environment

An increase in drink prices and investment in marketing drove Coca-Cola’s revenues up during the first quarter of the year despite a decline in Diet Coke sales.

Revenues increased slightly by 1% to $10.7bn and gross profit rose 2% to $6.6bn. However, income before taxes declined by 10% to $1.56bn, driving earnings per share down to 0.35c from 0.36c.

The world's largest beverages company said it gained value shares in sparkling and still beverages, juice drink, ready-to-drink teas and packaged water, but Diet Coke sales declined by 6%.

Coke Zero grew 4% and the Coca-Cola brand grew 5%, but the strength of the dollar resulted in an 8 point headwind on operating income.

Chairman and chief executive Muhrar Kent said: "We are pleased with our solid progress on the implementation and execution of our global strategic initiatives. Though we are still in the early stages, we see some initial positive indicators that we have the right strategies in place to accelerate growth.

“However, we continue to view 2015 as a transition year as the benefits from the announced initiatives will take time to fully materialize amidst an uncertain and volatile macroeconomic environment.”

The group added that the impact of structural items in 2015 will impact its net revenue growth. Furthermore, fluctuations in foreign currency exchange rates will also impact the company’s full-year results.