Coca-Cola Co posted a drop in sales for the fourth consecutive quarter as the demand weakened for carbonated drinks across Europe and the U.S. dollar remained strong which cut into the revenue from other markets outside the U.S. like Latin America.
Stock in the largest beverage maker in the world fell by 1.7% in trading Wednesday before the opening bell.
Coke as well as PepsiCo its smaller rival has seen sales drop as the consumer has turn increasingly towards healthier drinks and cut back on carbonated drinks in favor of fruit juices, teas and smoothies.
The increase in the U.S. dollar also has hit Coca-Cola and rivals, which have large presences in market that are not in the U.S. including Brazil and China.
The value on average of the dollar increased 2.6% during the first three months of 2016 compared to one year ago. The dollar had increased 18% over the first three months of last year.
PepsiCo earlier this week reported a drop in sales for the quarter, but a strong demand in snacks across North America was able to offset that and help the beverage maker post a profit that was better than had been expected.
Sales for Coke in Europe, the third largest market for the company, were down by 1% during the April 1 ending quarter, while a strong U.S. dollar and weak demand across Brazil pulled sales in Latin America down over 12.2%.
Coke’s attributable net income to its shareholders dropped by 4.5% to just over $1.48 billion equal to 34 cents a share.
Excluding certain items, Coke’s per share earnings were 45 cents, which beat estimates by analysts on Wall Street of 44 cents.
Coke, which is targeting annual cost savings of $3 billion before 2019, said that its selling, administrative and general expenses were down 8% for the quarter.
Operating revenue was down 4% to just over $10.27 billion.
However, its organic revenue, which eliminates the impact from any acquisitions, divestitures as well as movement from currency, was up 2%.