Industry News | July 17, 2007
Coca-Cola Reports 2Q Results
“We delivered another strong quarter,” said Neville Isdell, chairman and chief executive officer, The Coca-Cola Company. “While very pleased with this performance, we must underscore that we continue to manage for the long term. An overall favorable global environment has assisted our concerted and successful actions in the market place.
“This is our second consecutive quarter of 6 percent unit case volume growth and double-digit comparable earnings growth. We continue to demonstrate the growth potential of sparkling beverages, which delivered 4 percent growth in the quarter, while also driving 12 percent growth across our ever-expanding still portfolio. As we enter the second half of the year, we remain focused on leveraging our leading brands, building our innovation pipeline and driving productivity – the platform for delivering long-term sustainable growth.”
“The second quarter was a significant one for The Coca-Cola Company,” said Muhtar Kent, president and chief operating officer, The Coca-Cola Company. “Not only did we deliver strong, broad-based growth, but we also successfully completed the acquisition of glacéau, demonstrating our commitment to restoring growth in our flagship market of North America. Our results continue to be led by our international operations, which once again delivered 9 percent unit case volume growth. Performance in important markets, such as Japan, Germany, India and the Philippines, is showing signs that the actions we’ve taken are working. Much work remains to be done as our business and industry evolves, but each quarter – including now in North America – we are making steady progress. I am confident that with our focused and effective strategic agenda supported by a renewed confidence within our organization, we will continue to deliver growth and value to our shareowners over the long term.”
* Second quarter net operating revenues increased 19 percent. Revenue growth reflected a 7 percent increase in concentrate sales, a 7 percent increase from structural changes resulting from acquisitions of certain bottlers, a 2 percent benefit from pricing and mix and a 3 percent positive currency impact.
* Operating income in the quarter increased 11 percent on a reported basis and 12 percent after considering items impacting comparability in both the current and prior year periods. Items impacting comparability negatively affected second quarter pre-tax operating income by $48 million in 2007 and by $31 million in 2006. Currency benefited operating income in the quarter by 3 percent.
* The Company has lowered its expected underlying effective tax rate on operations for 2007 and 2008 to 22.5 percent from 23.0 percent, providing a $0.01 per share benefit in the quarter.
* Year-to-date, the Company repurchased $1.0 billion of its stock and intends to repurchase a total of $1.75 to $2.0 billion of its stock for the full year.
* Cash from operations was $3.3 billion year-to-date, compared with $2.8 billion in the prior year period, an increase of 19 percent.
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