Drink maker Coca-Cola earned $ 1.182 billion in the first quarter of the year, down 20 percent from the same period in 2016, driven by a drop in sales that led the company to announce some 1,200 layoffs.
The company said last January it posted a net profit per share of 27 cents, compared with 34 cents in the first quarter of last year, when earnings were $ 1.483 billion.
The Atlanta multinational posted $ 9,118 million in the first three months of the year, down 11% from the same period a year ago, when its turnover was $ 10.282 billion.
“Our first quarter performance is in line with what we planned, and we are on track to meet our year-end sales and profit targets,” CEO Muhtar Kent said in announcing the accounts.
The top executive of the multinational recalled that next week he will transfer the management of the company to James Quincey, in which he said he has “full confidence” that he will be able to complete the transformation of Coca-Cola.
Later, in a meeting with analysts and investors to evaluate the results, Kent said that the company will have to reduce its workforce by 1,200 workers from the second half of the year.
The layoffs are part of a restructuring plan that has already launched Coca-Cola, which currently has more than 100,000 employees worldwide, with which it expects to save about $ 800 million.
By geographic area, Coca-Cola sales in the United States rose 1% to $ 2,394 million, but profit fell 18% to $ 473 million, while revenue in Latin America fell by 1% and earnings fell by 2% %.
In Europe it reported a 7% drop in turnover, to $ 1.632 billion and a profit decline of 7% to 885 million, while Asia and the Pacific fell sales by 2% and profits 1%.
The results did not convince analysts and Coca-Cola shares, one of the 30 components of the Dow Jones index, closed today with a fall of 0.39% on the New York Stock Exchange.