Coca-Cola (NYSE: KO)
Coca-Cola earnings per share (EPS) climbed a cent higher than Wall Street had been expecting, to trade at 39 cents. Even after announcing a 20 percent decline in its net revenue during its 4Q presentation on Friday, the company’s shares still went ahead to beat analysts’ expectations.
At the close of the day, the shares were up nearly 2 percent trading at $45.61. Coke announced that its organic sales went up 6 percent, while its $7.51 billion revenue surpassed the projected $7.37 billion.
The company attributed the revenue drop to the ongoing refranchising of its bottling territories. Coke is refranchising all bottling operations that were previously under the ownership of local Chinese associates, as well as African operations.
KO Earnings and Outlook
Coke was recently charged $3.6 billion one-time tariff on its historical offshore earnings under the new US tax law. Although its North American unit volume grew by 1%, the company recorded an even total unit volume for full and quarter year.
Earlier this year, the company launched a new line of Diet Coke flavors to mostly positive reception. However, the beverage giant may be in for some competition with the recent merger of Dr Pepper Snaple Group Inc. and Keurig Green Mountain Inc., as Keurig’s owner takes over the merger’s leadership.
Coca-Cola’s Comments
In a statement, Coca-Cola CEO, James Quince said, “We accomplished or went above our full-year target while carrying out important changes, as we kept on transforming into an absolute beverage company. Although there is still a lot of work to do, our momentum is encouraging as we head further into 2018.” –TheStreet
Coca-Cola CO Profile
Coca-Cola is an American company and the biggest manufacturer of beverage products in the world. It was incorporated in 1919, and licenses or owns brands of non-alcoholic beverages, mostly sparkling beverages as well as a range still beverages like enhanced waters, flavored waters, juice drinks, sports drinks, dairy and energy drinks, ready-to-drink coffees and teas. The company’s headquarters are in Atalanta, Georgia and is listed on the NYSE.
The segments of the beverage giant include Europe, North America and Middle East; Asia Pacific; Latin America; Africa; Corporate, Bottling Investments. The company markets and owns a range of sparkling, non-alcoholic beverage brands, including Diet Coke, Coca-Cola, Sprite and Fanta.
As of Dec 31, 2016, the Company marketed, licensed or owned more than 500 brands of non-alcoholic beverages. Coca-Cola makes sells its beverage products all over the world through its chain of Company-controlled or-owned distribution and bottling operations, as well as retailers, wholesalers, distributors and bottling partners.
The company’s brands of non-alcoholic beverages include Coca-Cola Light/Diet Coke, Minute Maid, Gold Peak, Powerade, Dasani, Fanta, Coca-Cola Zero, Schweppes, Ice Dew and Glaceau Smartwater. In its concentration operations, the beverage giant sells syrups and concentrates to authorized canning and bottling partners.
The bottling partners either mix sparkling water with the syrups, or mix sweeteners with still water or sparkling water to create finished beverages.
Coca-Cola competes with Suntory Beverage & Food Limited, Nestle S.A., Mondelez International, Inc, PepsiCo, Inc., Groupe Danone, Unilever, and The Kraft Heinz Company. –TheGuardian
