By Jonathan Davies

Coca-Cola has reported a rise in profits despite falling sales after increasing prices in North America.

The fizzy drinks giant reported profits of $3.1 bn (£2bn) in the second quarter, 20% more than the same period last year.

Revenues dropped 3% to $12.16bn in the three months to 3 July.

"Our second quarter results were in line with our expectations and mark continued progress toward restoring momentum in our global business," said chief executive Muhtar Kent in a statement on Wednesday.

The strength of the US dollar affected revenues, with the US dollar having increased in value by as much as 8% against other key currencies. Around 40% of Coca-Cola's total sales come from abroad. Mr Kent warned that currency fluctuations would continue to have an "unfavourable" effect on its figures.

The Coca-Cola Zero brand saw sales jump 6%, but Diet Coke sales dropped 7%.