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Strong second-quarter financial news had Coca-Cola Co. bubbling over last week, while Pepsi-Cola Co. was flat.

Coca-Cola reported a 12% increase in profits to $758 million for the quarter ended June 30. Revenue was $4.34 billion, up 11% from the same period last year.

Meanwhile, as expected, Pepsi-Cola Co. parent PepsiCo announced net earnings were up 5% to $446.5 million, including a onetime gain of $16.8 million from the public offering of a bottling venture in South America, for the 12 weeks ended June 11. Without that, the company would have earned the same as in the second quarter of 1993. Net sales rose 11% to $6.56 billion.

Coca-Cola's success was fueled largely by favorably received advertising, emerging international markets and growth in cola alternatives.

"They're doing very well for a whole bunch of reasons," said Tom Pirko, president of Bevmark, a New York-based consultancy. "They've focused on re-establishing the value of their trademark. The advertising in particular has been a breath of fresh air for everyone, including the consumer. I think it shows the long-term payoff of the [Creative Artists Agency] approach."

India, China, the Middle East and Latin America were particularly important growth areas for Coca-Cola, which gets 80% of its earnings from overseas. In the U.S., PowerAde sports drink, Minute Maid Juice to Go and Nestea iced tea, a joint venture with Nestle, helped raise volume sales.

PepsiCo's disappointing report, which the company last month said it expected, was due largely to slow sales for its restaurant chains and soft-drink business.

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