Coca-Cola’s Net Income Falls 28% as Costs Climb

Coca-Cola Co. said Tuesday that fourth-quarter profit fell 28% after it increased marketing to halt a decline in U.S. soda sales.

Soda sales in the U.S. rose for the first time in almost a year after Coca-Cola boosted spending 12% to $2.29 billion. Net income dropped to $864 million, or 36 cents a share, on expenses to return overseas profit to the U.S. Excluding those costs, Coca-Cola earned 46 cents a share, exceeding analysts’ average estimate by a penny.

A year earlier, the company earned $1.2 billion, or 50 cents a share.

Sales rose 6.7% to $5.6 billion, helped by gains in fast-growing markets including China, Russia and Brazil.

Chief Executive E. Neville Isdell said the company had “arrested the decline and we are making progress” in increasing soda sales with new drinks such as Coca-Cola Zero.

“They’ve been putting a ton of money into their marketing, and we’re starting to see the fruits of that spending,” said Christopher Meeker, an analyst with Farr Miller & Washington.

Shares of Coca-Cola rose 9 cents to $41.03.