The Coca-Cola Company 2009 Third Quarter And Year-To-Date Results
Today, our Company reports continued growth in worldwide unit case volume, which drove gains in global volume and value share, with year-to-date revenue growth in line with our long-term target and profit growth exceeding our long-term target.
* International unit case volume growth of 4 percent in the quarter and year-to-date led to solid worldwide unit case volume growth of 2 percent in the quarter and year-to-date.
* Third quarter reported EPS was $0.81, even with the prior year quarter. Comparable EPS was $0.82, down 1 percent versus the prior year quarter reflecting a negative currency impact.
* Reported operating income decreased 2 percent in the quarter and decreased 4 percent year-to-date. Comparable currency neutral operating income growth of 9 percent in the quarter and year-to-date, exceeding our long-term growth target.
* Strong cash generation, with year-to-date cash from operations of $6.3 billion, an increase of 11 percent versus the prior year period.
* Global volume and value share gains continued for the ninth consecutive quarter.
* Productivity initiatives well on track to achieve $500 million in annualized savings by year-end 2011; with plans to deliver more than half of the savings by year-end 2009.
ATLANTA -- The Coca-Cola Company reports sound third quarter 2009 operating results with unit case volume increasing 2 percent, successfully cycling 5 percent growth in the prior year quarter. Internationally, we achieved broad-based unit case volume growth of 4 percent, cycling 7 percent growth in the prior year quarter. In the quarter, unit case volume growth increased strongly in key emerging markets with 37 percent growth in India, 15 percent growth in China and 3 percent growth in Brazil.
Globally, we gained volume and value share in nonalcoholic ready-to-drink beverages for the ninth consecutive quarter. The global “Open Happiness” campaign continued to fuel growth of brand Coca-Cola. Notably, brand Coca-Cola unit case volume growth was strong, up 2 percent in the quarter, across both developed and emerging markets including 8 percent growth in Mexico, 6 percent growth in Italy, 27 percent growth in India and 3 percent growth in China. Total sparkling beverage unit case volume increased 1 percent in the quarter, with international sparkling beverage unit case volume increasing 2 percent, cycling 5 percent growth in the prior year quarter. Total still beverage unit case volume increased 7 percent in the quarter, led by sound growth across the portfolio, including juices and fruit stills, teas and water brands. Still beverage unit case volume increased 10 percent internationally and was even in North America.
“I am pleased to report that we have again delivered solid results this quarter,” said Muhtar Kent, chairman and chief executive officer, The Coca-Cola Company. “We continue to grow our currency neutral revenues, gain global nonalcoholic ready-to-drink volume and value share, expand our margins and invest in our business, all while generating tremendous cash flow. The fundamentals of our business remain strong and our franchise system is delivering results that keep us on track to achieve our long-term growth expectations. Although we expect the consumer to continue facing economic uncertainties into 2010 and for consumer sentiment to recover slowly, we believe more than ever that we have the right strategies being executed, the right leadership team in place and have taken the right actions this year to drive continued growth and to make the most of the abundant opportunities before us.”
“This is a dynamic time in the history and evolution of our Company,” said Mr. Kent. “With our 2020 Vision, we have a clear Coca-Cola system vision for the future of our business, and we are applying that vision in our strategic planning, system alignment and focused execution. Each day we work diligently to make our Company stronger for the future and to ensure that we continue driving long-term sustainable results, while delivering the beverages that consumers love.”
* Year-to-date reported net revenues decreased 5 percent. After excluding structural items, year-to-date net revenues increased 5 percent on a comparable currency neutral basis, in line with our long-term growth target.
* Year-to-date reported operating income decreased 4 percent. With continued focus on cost management and by leveraging our productivity initiatives, year-to-date operating income increased 9 percent on a comparable currency neutral basis, exceeding our long-term growth target.
* Year-to-date cash from operations increased to $6.3 billion, and we repurchased $241 million of our stock in the third quarter.
* All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period.
* All references to unit case volume percentage changes are computed based on average daily sales for all periods presented.
* 2009 year-to-date results are positively impacted by five additional selling days, which will be offset by six fewer selling days in the fourth quarter.
* Our long-term growth targets as referenced in this release are on a comparable currency neutral basis and exclude structural changes.
Review the complete third quarter and year-to-date 2009 results: http://www.thecoca-colacompany.com/presscenter/pdfs/ko_earnings20091020.pdf
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