Coca-Cola’s chairman has set a target of 2006 to turn around its fortunes, despite reporting better than expected results for its fourth quarter yesterday.

Neville Isdell, the chairman and chief executive, said he was “not satisfied” with Coke’s performance in 2004, according to newspaper reports today.

The company said profits reached $4.8bn (£2.6bn) in 2004, although sales declined in its key home market and were flat across Europe. The company saw good results from China, Brazil and Argentina.

Isdell reportedly went on to note that Coke’s key North American market has suffered from fierce competition from Pepsi and other soft drinks makers.

Last week the company announced it would launch a low-calorie version of its Diet Coke drink with Splenda, an artificial sweetener. The company also reported that Diet Coke with Lime, which was launched recently in the UK has seen positive results so far.