Coca-Cola (KO) Posts Solid Q3 Results Showing 45% Rise in Sales, 12% Rise in EPS
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Price: $42.97 -0.28%
Revenue Growth %: -0.5%
Financial Fact:
NET OPERATING REVENUES: 11.46B
Today's EPS Names:
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Revenue Growth %: -0.5%
Financial Fact:
NET OPERATING REVENUES: 11.46B
Today's EPS Names:
LBIX, ESEA, ISS, More
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The Coca-Cola Company (NYSE: KO) reported solid third quarter results showing a 12 percent increase in earnings per share.
For the quarter, net sales rose 45 percent to $12.2 billion, topping the consensus of $12.02 billion.
Reported operating income rose 17% to $2.7 billion and operating income for the quarter was $3.0 billion, up 21 percent, reflecting strong top-line performance, a 6 percent currency benefit and the acquisition of CCE's former North America operations, but was partially offset by commodity costs. The company reports cost of goods sold was up 64 percent in the quarter to $12.25 billion.
Earnings per share for the quarter rose 12 percent to $1.03 in the third quarter, topping the consensus by $0.01. Net income for the quarter rose 8 percent to $2.92 billion.
The company ended the quarter with $12.68 billion in cash and cash equivalents, a 49 percent increase year over year.
Global volume grew 5 percent and was led by the Coca-Cola brand. KO's Eurasia and Africa Group’s volume increased 6 percent in the quarter, led by strong results in India which were up 19 percent and the Middle East and North Africa which were up 9 percent. The company’s Europe Group’s volume growth in the quarter was slightly positive at 2 percent as revenue rose 5 percent during the quarter. Its Latin America Group’s volume grew 7 percent in the quarter as sales increased by 17 percent. Strong volume growth in its Latin America Group during the quarter was led by 8 percent growth in Mexico, 11 percent growth in the Latin Center Region, and 10 percent growth in the South Latin Region. Coke’s North America Group’s volume grew 5 percent with revenues rising by 148 percent, primarily reflecting the acquisition of CCE’s former North America operations. The company’s Pacific Group’s volume grew 5 percent in the quarter. Volumes rose by 11 percent in China but fell by 3 percent in Japan. Revenue rose 8 percent over the whole region.
Coca-Cola said company-wide productivity initiatives are well on track to exceed the upper end of the original target range of $400 to $500 million in annualized savings by year-end 2011.
Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company, said, "We are pleased with our third quarter results. For a sixth consecutive quarter, we delivered performance results in line with or ahead of our long-term growth targets. Importantly, we accomplished these results during a time of ongoing global market volatility, which is a testament to our clear and focused system vision, strong brands and solid execution. As we said when we launched our 2020 Vision, we are a growing business that is continually adapting to ever-changing economic circumstances and consumer preferences, underscoring the strength and resilience of our business."…"In 2009, when the world’s financial markets were in turmoil, our global system made a commitment to invest through the crisis. Today, as we execute our 2020 Vision, we continue to strategically invest in consumer marketing and sales execution, all with a single-minded goal of becoming the beverage leader in every market and in every category of value to us. As a result of that commitment, our global system has never been stronger."
Shares of KO are trading down 0.39 percent in the pre-market hours of trading to $66.74 after closing down 1.25 percent yesterday.
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For the quarter, net sales rose 45 percent to $12.2 billion, topping the consensus of $12.02 billion.
Reported operating income rose 17% to $2.7 billion and operating income for the quarter was $3.0 billion, up 21 percent, reflecting strong top-line performance, a 6 percent currency benefit and the acquisition of CCE's former North America operations, but was partially offset by commodity costs. The company reports cost of goods sold was up 64 percent in the quarter to $12.25 billion.
Earnings per share for the quarter rose 12 percent to $1.03 in the third quarter, topping the consensus by $0.01. Net income for the quarter rose 8 percent to $2.92 billion.
The company ended the quarter with $12.68 billion in cash and cash equivalents, a 49 percent increase year over year.
Global volume grew 5 percent and was led by the Coca-Cola brand. KO's Eurasia and Africa Group’s volume increased 6 percent in the quarter, led by strong results in India which were up 19 percent and the Middle East and North Africa which were up 9 percent. The company’s Europe Group’s volume growth in the quarter was slightly positive at 2 percent as revenue rose 5 percent during the quarter. Its Latin America Group’s volume grew 7 percent in the quarter as sales increased by 17 percent. Strong volume growth in its Latin America Group during the quarter was led by 8 percent growth in Mexico, 11 percent growth in the Latin Center Region, and 10 percent growth in the South Latin Region. Coke’s North America Group’s volume grew 5 percent with revenues rising by 148 percent, primarily reflecting the acquisition of CCE’s former North America operations. The company’s Pacific Group’s volume grew 5 percent in the quarter. Volumes rose by 11 percent in China but fell by 3 percent in Japan. Revenue rose 8 percent over the whole region.
Coca-Cola said company-wide productivity initiatives are well on track to exceed the upper end of the original target range of $400 to $500 million in annualized savings by year-end 2011.
Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company, said, "We are pleased with our third quarter results. For a sixth consecutive quarter, we delivered performance results in line with or ahead of our long-term growth targets. Importantly, we accomplished these results during a time of ongoing global market volatility, which is a testament to our clear and focused system vision, strong brands and solid execution. As we said when we launched our 2020 Vision, we are a growing business that is continually adapting to ever-changing economic circumstances and consumer preferences, underscoring the strength and resilience of our business."…"In 2009, when the world’s financial markets were in turmoil, our global system made a commitment to invest through the crisis. Today, as we execute our 2020 Vision, we continue to strategically invest in consumer marketing and sales execution, all with a single-minded goal of becoming the beverage leader in every market and in every category of value to us. As a result of that commitment, our global system has never been stronger."
Shares of KO are trading down 0.39 percent in the pre-market hours of trading to $66.74 after closing down 1.25 percent yesterday.
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