Coca Cola (NYSE: KO) reported Q4 EPS of $0.44, $0.02 better than the analyst estimate of $0.42. Revenue for the quarter came in at $10.87 billion versus the consensus estimate of $10.76 billion.

OPERATING REVIEW

TOTAL COMPANY

* Price/mix includes the impact of certain economic (nondesignated) hedges. After adjusting for the impact of these economic hedges, price/mix increased 2% in the fourth quarter and 1% for the full year. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule.

** Comparable currency neutral (CN) net revenues (structurally adjusted) and comparable currency neutral operating income (structurally adjusted) are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability, the impact of changes in foreign currency exchange rates and the impact of structural items. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule.

Performance Highlights

• We gained global value share and held volume share in nonalcoholic ready-to-drink (NARTD) beverages in the quarter. Additionally, we gained global volume and value share in sparkling and still beverages as well as in the juice and juice drinks, ready-to-drink tea and packaged water categories as we continue to strengthen our brands and our product portfolio across key markets and categories.
• Global sparkling beverage volume grew 1% in both the quarter and full year driven by growth in brand Coca-Cola, Sprite and Fanta. Brand Coca-Cola was up 1% in the quarter and grew slightly for the full year, rounding to even.
• Global still beverage volume grew 2% in the quarter and 4% for the full year driven by growth in ready-to-drink tea, sports drinks and packaged water. Volume growth in these beverage categories was partially offset by a decline in juice and juice drinks, due in part to price increases to cover higher input costs.
• We continue to take steps to strengthen our brand portfolio in fast-growing categories and key markets as evidenced by the addition of Gold Peak tea, FUZE TEA and I LOHAS mineral water to our portfolio of billion-dollar brands, bringing the total number of billion-dollar brands to 20.

2015 OUTLOOK

• As discussed during the Company’s December 2014 modeling call, we estimate that the net impact of structural items on full-year 2015 results will be as follows:

• a slight positive on net revenue growth;
• a 1 to 2 point headwind on gross profit growth;
• a 1 point headwind on operating income growth; and
• a slight headwind on profit before tax growth.

• We expect fluctuations in foreign currency exchange rates to have an unfavorable impact on our reported results in 2015. Based on current spot rates, our existing hedge positions, and the cycling of our prior year rates, we estimate that currency will be an approximate 5 point headwind on net revenues and a 7 to 8 point headwind on profit before tax for the full year. For the first quarter of 2015, we estimate that currency will be an approximate 6 point headwind on net revenues and an approximate 8 point headwind on profit before tax.
• The underlying effective annual tax rate in 2015 is expected to be 22.5%.
• We are targeting full-year 2015 net share repurchases of $2.0 to $3.0 billion.
• Given the above, the Company expects full-year comparable currency neutral EPS growth to be mid single digits, roughly in line with our growth rate in 2014.

For earnings history and earnings-related data on Coca Cola (KO) click here.