Coca-Cola Company (KO - Get Report)  beat Wall Street forecasts in its fourth-quarter earnings on Friday, Feb. 16, yet posted a whopping 20% decline in net revenue.

Its earnings per share clocked in at 39 cents, 1 cent more than analysts' expectations. Coke's revenue of $7.51 billion exceeded the projected $7.37 billion, while organic sales rose 6%.

The revenue drop is due to "ongoing refranchising of bottling territories," the company said. It is refranchising bottling operations formerly owned by local Chinese partners, as well as operations in Africa.

Under the new tax law, Coke was charged a one-time tariff of $3.6 billion on historical offshore earnings. For the quarter as well as the full year, total unit volume was even, although North American volume grew 1%.

"We achieved or exceeded our full-year guidance while driving significant change as we continued to transform into a total beverage company," CEO James Quincey said in a statement. "While there is still much work to do, I am encouraged by our momentum as we head into 2018."

Earlier this year, Coke unveiled a line of new Diet Coke flavors with updated packaging to mostly positive receptions. Competition may be headed Coke's way, however, with the merger of K-cup coffee maker Keurig Green Mountain Inc. and beverage maker Dr Pepper Snapple Group Inc. (DPS) , as Keurig's owner — Luxembourg-based private holdings company JAB Holding Co. — took control of the soda company.

Coke shares are up nearly 2% Friday morning before the bell, trading at $45.61.