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Continued Strong Results Reported By Coca Cola In Third Quarter


10/18/2019


Continued Strong Results Reported By Coca Cola In Third Quarter
The largest soft drinks company of the world Coca Cola posted strong revenue growth and gains in the value of its share globally in the third quarter because of its continued execution of key strategies.
The company reported 8 per cent growth in its revenues for the period with a 5 per cent increase in its organic revenues (non-GAAP) in the same period. The company said that this was because of innovation, revenue growth management and better execution and implementation of its strategies
 The company has also updated its full year guidance based on its year-to-date performance.
 
“We are positioning the company to create a better shared future for all of our stakeholders by delivering on our vision and growing sustainably,” the company said in a statement.
 
"Our performance gives us confidence that our strategies are taking hold with our consumers, customers and system," said James Quincey, chairman and CEO of The Coca-Cola Company. "We are positioning the company to create a better shared future for all of our stakeholders by delivering on our vision and growing sustainably," he added.
 
The company reported net revenues at $9.5 billion for the quarter comprising of organic revenues (non-GAAP) which grew at 5 per cent. The company said that the execution and implementation of its strategies for price/mix which grew at 6 per cent drove the revenues. However the company also faced headwinds of a decline of 2 per cent in concentrate sales.
 
The company reported an operating margin of 26.3 per cent, which included items impacting comparability, compared to a margin of 29.8 per cent in the same period a year ago. It also reported comparable operating margin (non-GAAP) of 28.1 per cent compared to 30.7 per cent reported by it in the same period a year ago. A 260 basis point headwind from currency and net acquisitions negatively impacted the margins.
 
There was a significant 37 per cent growth in the reported earnings per share for the third quarter for Coca Cola at $0.60. There was however a decline of 2 per cent in comparable EPS (non-GAAP) at $0.56.
 
Coca Cola announced that it continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages market during the quarter
 
The company also reported a 37 per cent in year-to-date cash from operations which came at $7.8 billion driven mostly by strong underlying growth, initiatives to reduce working and the timing of tax payments.
 
Expanded revenue growth management capabilities and improved execution helped the company to continue to capitalize on opportunities for growth. Coca Cola said that the key strategies for this included increasing availability and distribution of priority SKUs. 
 
An accelerated speed of innovation and the optimization of price/pack architecture in the marketplace helped Coca Cola to make a 6 per cent year-to-date growth in retail value for trademark Coca-Cola globally which helped the company to expand headroom for growth in sparkling beverages segment.
 
The company successfully executed its strategies for disciplining portfolio growth of premium brands during the period. 
 
Coca Cola forecast at least a 5 per cent growth in organic revenues (non-GAAP) for the full 2019 and an at least 12 per cent growth in comparable currency neutral net revenues (non-GAAP) in the same period. The company also pegged the growth in operating income between 12 per cent and 13 per cent. It however did not change its forecast for EPS which it kept between -1 per cent and 1 per cent growth.
 
(Source:www.businesswire.com)