Coca-Cola profit up as growth of Sprite, Coke Zero offset Diet Coke drop

Diet Coke lost favor as soft-drinkers reached for Coke, Sprite and even water instead at the end of 2015.

Coca-Cola's (KO) fourth-quarter profit rose as the company achieved global volume growth in both still and sparkling beverages, the latter of which is an encouraging sign as Coca-Cola tries to find its way as health-conscious consumers spurn sugary drinks.

Global beverage volume rose 3% for the quarter, including a 2% rise for sparkling beverages, the company said in its fourth-quarter earnings report Tuesday.

Still, Coke's non-carbonated options generally grew more than its sodas, a sign that shoppers are increasingly more apt to quench their thirst with what's perceived as healthier beverages.

Coke saw 8% volume growth in packaged water, 6% in bottled tea, 5% in juice and 2% in sports drinks. For the quarter ended Dec. 31, organic sales of Coca-Cola branded drinks rose 1%, Sprite rose 3% and Coca-Cola Zero rose 7%. Diet Coke and Coke Light were a disappointment, falling 5%.

The company announced Thursday that it would accelerate its plan to shift all North American bottling operations to franchised operations in a bid to be a "less capital intensive operation," CEO Muhtar Kent said in a statement. The company said it plans to complete the franchising by 2017. Coca-Cola also signed a letter of intent to move its company-owned bottling operations in China to partners China Foods Limited and Swire Beverage Holdings Limited.

Coca-Cola's net income surged 61% in the fourth quarter to $1.2 billion, compared to the same period a year earlier.

The beverage giant's earnings per share, excluding one-time items, was 38 cents, beating the S&P Global Market Intelligence analyst estimates of 36 cents.

The company's operating revenue fell 8% to $10 billion for the quarter. It would have been a 1% decline when factoring out the negative effect of currency translation rates, and Coca-Cola said the result would have been even better if not for six fewer days in the reporting calendar.

In a preview of 2016, Coca-Cola projected organic revenue growth of 4% to 5% and pre-tax income growth unaffected by currency rates of 6% to 8%.

Contributing: Hadley Malcolm

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.