Coca-Cola forecasts drop in 2017 profit on refranchising costs

ATLANTA - Coca-Cola forecast a drop in full-year adjusted profit, hurt by higher costs for refranchising its bottling operations in North America, according to Reuters.The world's largest beverage maker's shares were down 2 percent at $41.12 in premarket trading on Thursday.Coca-Cola has been offloading much of its bottling business to cope with falling demand for carbonated beverages in North America.

The company said on Thursday it was on track to complete refranchising of its U.S. bottling operations by the end of this year. Charges related to the refranchising of its U.S. bottling operations look to be a more meaningful drag on the company's full-year profit than analysts were expecting, brokerage Cowen & Co said in a note to clients on Thursday.

The company forecast 2017 adjusted earnings to fall 1-4 percent from $1.91 per share in 2016. Analysts on average were expecting earnings of $1.97, according to Reuters.

The last quarter included a $919 million charge related to the refranchising of its bottling operations.

The global sales volume for the company fell 1 percent in the fourth quarter, hurt by high levels of inflation in certain Latin American countries.