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KO · COCA COLA CO

31 filings

10-K

KO 10-K Annual Reports

COCA COLA CO - 31 annual reports

Filing record · 2016–202610-K1110-Q338-K143

2025
COCA COLA CO Annual Report, Year Ended Dec 31, 2025
The Coca-Cola Company's (KO) 10-K filing for the fiscal year ending December 31, 2025, reveals a company navigating a dynamic global market with a focus on brand strength, operational efficiency, and strategic growth initiatives. Despite facing headwinds such as inflationary pressures and geopolitical instability throughout 2025, the company reported an increase in net operating revenues to $47.94 billion, up 2% from the prior year. This growth was primarily driven by favorable pricing initiatives across its operating segments, particularly in EMEA and North America, which contributed to a 4% favorable price/mix impact on consolidated net operating revenues. Operationally, KO experienced a slight decrease in unit case volume globally, down 0.2% to 33.8 billion, with North America showing a 1% decline. However, concentrate sales volume saw a 1% increase, indicating a continued demand for its core products. The company's strategic investments in innovation, digital transformation, and talent acquisition remain key priorities to address evolving consumer preferences and competitive pressures. Significant events during the year included a substantial impairment charge for the BodyArmor trademark ($960 million), offset by gains from the sale of investments, including its stake in Coca-Cola Consolidated. The company also highlighted its ongoing commitment to sustainability and its robust liquidity position, though it continues to manage a significant U.S. federal income tax dispute with potential substantial liabilities.
Feb 20, 2026
2024
COCA COLA CO Annual Report, Year Ended Dec 31, 2024
The Coca-Cola Company's 2024 10-K filing indicates a resilient performance despite varied global economic conditions. The company achieved a 3% increase in net operating revenues to $47.1 billion, driven by strong pricing initiatives across its segments and a 1% growth in both unit case and concentrate sales volume. However, operating income saw a 12% decrease to $10.0 billion, largely due to increased commodity costs, higher SG&A expenses, and significant other operating charges, including a substantial impairment charge related to the BodyArmor trademark. Significant events during the year included the payment of a $6.0 billion tax litigation deposit to the IRS and the continued focus on strategic priorities such as portfolio management and digital transformation. The company also continued its commitment to returning capital to shareholders through dividends, with the 63rd consecutive annual increase, and share repurchases. While facing currency headwinds and ongoing competitive pressures, Coca-Cola's diversified global presence and brand strength position it to navigate market challenges.
Feb 20, 2025
2023
COCA COLA CO Annual Report, Year Ended Dec 31, 2023
The Coca-Cola Company (KO) reported solid financial performance for the fiscal year ending December 30, 2023. The company demonstrated resilience and growth across its diverse portfolio of beverage brands, achieving an increase in net operating revenues driven by favorable pricing initiatives and a 2% growth in both unit case volume and concentrate sales globally. The company's strategic focus on brand building, innovation, and consumer-centric marketing continues to yield positive results, as evidenced by strong performance in key segments like Latin America and North America. Despite facing headwinds such as inflationary pressures on commodity costs and unfavorable foreign currency exchange rate fluctuations, Coca-Cola maintained a strong gross profit margin of 59.5%. The company also returned significant capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value. A notable item impacting operating income was the remeasurement of contingent consideration for the fairlife acquisition, which led to higher other operating charges. However, the company's overall financial position remains robust, supported by strong operating cash flows and substantial liquidity.
Feb 20, 2024
2022
COCA COLA CO Annual Report, Year Ended Dec 31, 2022
The Coca-Cola Company reported solid performance in its 2022 10-K filing, demonstrating resilience despite a challenging macroeconomic environment. The company saw an 11% increase in net operating revenues, reaching $43,004 million, driven by a 5% growth in both unit case and concentrate sales volume, alongside favorable pricing and product/geographic mix. This growth was achieved across all operating segments, particularly notable in Latin America and North America. Despite inflationary pressures and increased commodity and transportation costs which impacted gross profit margin, Coca-Cola's strategic focus on brand investment, innovation, and consumer-centric marketing continues to drive results. The company also highlighted its commitment to sustainability and its robust financial position, supported by strong cash flow generation and prudent capital allocation. Investors should note the ongoing significant tax dispute with the IRS, which could have a material impact on future financial results if decided unfavorably, although the company remains confident in its defense.
Feb 21, 2023
2021
COCA COLA CO Annual Report, Year Ended Dec 31, 2021
Coca-Cola Company (KO) reported strong results for the fiscal year ending December 31, 2021. The company saw a significant increase in net operating revenues, driven by an 8% rise in unit case volume and a 9% increase in concentrate sales volume compared to 2020. This growth was attributed to the gradual recovery of away-from-home consumption channels and effective pricing and product mix strategies. The company's diversified portfolio, spanning sparkling flavors, hydration, coffee, tea, and nutrition, contributed to this performance across its operating segments. Financially, Coca-Cola demonstrated robust operating income growth, bolstered by improved gross profit margins and strategic cost management. The company also continued its commitment to returning capital to shareholders through dividends and share repurchases. Despite facing challenges such as increased commodity and transportation costs, and ongoing COVID-19 pandemic impacts, Coca-Cola's strategic initiatives, including organizational transformation and portfolio optimization, position it for continued growth and value creation.
Feb 22, 2022
2020
COCA COLA CO Annual Report, Year Ended Dec 31, 2020
The Coca-Cola Company's 2020 10-K filing reflects a challenging year significantly impacted by the COVID-19 pandemic. The company experienced a notable decrease in net operating revenues and unit case volume, primarily due to disruptions in the 'away-from-home' consumption channels like restaurants and events. While 'at-home' consumption saw some increase, it did not fully offset the decline. Despite the pandemic's headwinds, Coca-Cola continued to execute its "emerge stronger" strategy, focusing on portfolio optimization, marketing efficiency, and digital transformation. The company made significant investments, including the acquisition of the remaining stake in fairlife, LLC, and implemented cost management initiatives. A key concern highlighted is a substantial U.S. federal income tax dispute with the IRS, which could potentially lead to a significant financial liability if not resolved favorably. Looking ahead, the company anticipates a gradual recovery as vaccine availability increases and consumers return to pre-pandemic routines. Management remains focused on driving growth through innovation, strengthening core capabilities, and optimizing the brand portfolio, while also navigating ongoing risks such as evolving consumer preferences and competitive pressures.
Feb 25, 2021
2019
COCA COLA CO Annual Report, Year Ended Dec 31, 2019
Coca-Cola Company's (KO) 2019 10-K filing highlights a robust global presence with over 500 nonalcoholic beverage brands across five key categories: sparkling soft drinks, water/enhanced water/sports drinks, juice/dairy/plant-based beverages, tea/coffee, and energy drinks. The company emphasizes its extensive distribution network, reaching consumers in over 200 countries through independent bottling partners. A significant portion of net operating revenues comes from concentrate operations, with finished product operations contributing the remainder. The filing also details the company's strategic focus on disciplined portfolio growth, an aligned bottling system, and stakeholder engagement, supported by digital transformation and sustainability initiatives. Key financial highlights for 2019 include net operating revenues of $37.266 billion, a consolidated net income of $8.985 billion, and diluted earnings per share of $2.07. Coca-Cola continued its shareholder return strategy by paying significant dividends and repurchasing shares. The company faced challenges such as evolving consumer preferences, health concerns (particularly obesity), and increased competition, but expressed confidence in its ability to adapt and innovate. The report also addresses potential risks including foreign currency fluctuations, increased indirect taxes, and ongoing tax disputes with the IRS, while noting the early stages of impact from COVID-19 in China.
Feb 24, 2020
2018
COCA COLA CO Annual Report, Year Ended Dec 31, 2018
The Coca-Cola Company's 2018 10-K filing reveals a robust global beverage operation, demonstrating resilience despite a notable decrease in net operating revenues compared to the prior year. The company continues to leverage its extensive brand portfolio and vast distribution network to reach consumers worldwide. Key strategic initiatives focus on consumer-centric growth, driving revenue through a "revenue growth algorithm," strengthening the "Coca-Cola system," embracing digitization, and empowering its workforce. The report also highlights the company's proactive approach to evolving consumer preferences, health concerns (particularly obesity), and increasing competition within the beverage industry. Financially, the company navigated a complex year marked by significant "structural changes," including refranchising of bottling operations, which impacted revenue figures but are part of a strategy to optimize the business model. Despite a decline in net operating revenues, the company managed its expenses effectively, leading to an increase in operating income and operating margin. The company's financial strength is further underscored by its substantial cash flow generation and a commitment to returning value to shareholders through dividends and share repurchases, alongside strategic investments like the acquisition of Costa.
Feb 21, 2019
2017
COCA COLA CO Annual Report, Year Ended Dec 31, 2017
Coca-Cola Company's (KO) 2017 10-K filing highlights a year of strategic refranchising and significant structural changes. The company continued to navigate evolving consumer preferences, with a focus on offering a diverse portfolio of beverages. Financially, 2017 saw a considerable decrease in net operating revenues and net income compared to 2016, largely due to the impact of divestitures, particularly the refranchising of bottling operations in North America and China. Despite the revenue decline, the company demonstrated resilience with a stronger gross profit margin and a commitment to returning value to shareholders through dividends and share repurchases. The filing also detailed a significant tax charge related to the Tax Cuts and Jobs Act of 2017, impacting reported net income.
Feb 23, 2018
2016
COCA COLA CO Annual Report, Year Ended Dec 31, 2016
In its 2016 10-K filing, The Coca-Cola Company (KO) reported a net operating revenue of $41.86 billion, a decrease of 5% from the previous year, primarily attributed to structural changes like bottler refranchising and adverse currency fluctuations. The company continued to emphasize its global beverage leadership, operating in over 200 countries with a portfolio of over 500 brands. Key financial highlights included a diluted net income per share of $1.49 and robust cash flow from operations of $8.8 billion, which supported significant investments and dividend payouts. The company highlighted its ongoing strategic priorities, including accelerating brand portfolio growth, driving revenue growth led by sparkling beverages, strengthening the Coca-Cola system, digitizing the enterprise, and unlocking the power of its people. Management acknowledged challenges such as evolving consumer preferences, increased competition, and health concerns related to obesity, while detailing efforts to offer healthier options and communicate transparently. The report also detailed the significant impact of refranchising bottling operations in North America and China, which affected reported revenues and segment profitability but was presented as a strategic move to enhance long-term brand value and system efficiency.
Feb 24, 2017
2015
COCA COLA CO Annual Report, Year Ended Dec 31, 2015
The Coca-Cola Company's 2015 10-K filing highlights a year of strategic adjustments and ongoing global brand management. The company, the world's largest beverage company with over 500 brands, continued to expand its distribution network across more than 200 countries. Financially, the company reported a decrease in net operating revenues for 2015 compared to 2014, largely attributed to unfavorable foreign currency fluctuations, particularly a stronger U.S. dollar. Despite this revenue dip, net income attributable to shareowners saw a slight increase, reflecting effective cost management and strategic reinvestments. Key operational changes included significant refranchising efforts in North America and ongoing productivity initiatives aimed at enhancing efficiency and driving long-term sustainable growth. The company faced several challenges, including evolving consumer preferences towards healthier options, the need for continued innovation, and intense competition. Management emphasized its commitment to offering a diverse portfolio, including low- and no-calorie options, and to responsible marketing practices. The company also highlighted its focus on water stewardship and sustainable sourcing as critical components of its long-term strategy.
Feb 25, 2016
2014
COCA COLA CO Annual Report, Year Ended Dec 31, 2014
The Coca-Cola Company's 2014 10-K filing reveals a company with a strong global presence, operating in over 200 countries with a vast portfolio of over 500 nonalcoholic beverage brands. The company emphasizes its core strengths, including its brand equity, extensive distribution network, and financial stability. In 2014, Coca-Cola continued to focus on operational efficiency and strategic initiatives, including refranchising certain North American territories and expanding its productivity and reinvestment programs, which aim to drive long-term profitable growth. Financially, the company reported net operating revenues of $45.998 billion for 2014, a slight decrease from the previous year, attributed to factors like currency fluctuations and structural changes. Despite the revenue dip, the company's operational income remained robust, demonstrating effective cost management. Coca-Cola continues to return value to shareholders through dividends and share repurchases, highlighting a commitment to shareholder returns alongside strategic business development.
Feb 25, 2015
2013
COCA COLA CO Annual Report, Year Ended Dec 31, 2013
The Coca-Cola Company's 2013 10-K report highlights its position as the world's largest beverage company, offering over 500 non-alcoholic beverage brands across diverse categories. The company generated $46.85 billion in net operating revenues, with international operations contributing 58% of this total. A significant strategic move discussed is the ongoing integration and evolution of its North American bottling operations following the 2010 acquisition of Coca-Cola Enterprises Inc.'s former North America business, aiming for more aligned and agile operations. Financially, the company reported a slight decrease in net operating revenues to $46.85 billion from $48.02 billion in the prior year, attributed to factors including foreign currency fluctuations and structural changes. Despite this, Coca-Cola maintained robust profitability with net income attributable to shareowners of $8.58 billion. The company demonstrated a commitment to shareholder returns through consistent dividend payments and share repurchases, underscoring its financial strength and strategic focus on long-term value creation. Key operational focuses for the year included accelerating growth for the Coca-Cola brand, strategically expanding its still beverage portfolio, and increasing media investments through productivity gains. The company also faces ongoing challenges related to evolving consumer preferences, competition, and health concerns such as obesity, to which it is responding with a wider range of low- and no-calorie options and transparent nutritional information.
Feb 27, 2014
2012
COCA COLA CO Annual Report, Year Ended Dec 31, 2012
The Coca-Cola Company's 2012 10-K filing highlights a year of continued global sales growth, driven by a 4% increase in unit case volume and a 3% rise in net operating revenues, totaling $48.0 billion. The company's strategic focus on expanding its brand portfolio and optimizing its distribution network, including the integration of the former Coca-Cola Enterprises Inc. North America business, has positioned it for sustained growth. Despite facing challenges such as increased competition, evolving consumer preferences, and concerns about health and sustainability, Coca-Cola demonstrated resilience, reporting a diluted net income per share of $1.97 and returning significant value to shareholders through dividends and share repurchases. Financially, the company maintained a strong balance sheet with total assets of $86.2 billion and managed its debt prudently, resulting in a healthy interest coverage ratio. Key investments in new product innovation and brand marketing underscore the company's commitment to adapting to market dynamics and capturing future growth opportunities. The company's extensive global reach and diverse brand portfolio across both sparkling and still beverages remain core strengths, enabling it to navigate economic uncertainties and maintain its leadership position in the nonalcoholic beverage industry.
Feb 27, 2013
2011
COCA COLA CO Annual Report, Year Ended Dec 31, 2011
The Coca-Cola Company's 2011 10-K filing highlights a year marked by significant strategic moves, particularly the acquisition of Coca-Cola Enterprises Inc.'s (CCE) North American business, which closed in October 2010. This acquisition substantially reshaped the company's operational structure in North America, integrating the acquired bottling and distribution operations into Coca-Cola Refreshments (CCR) and leading to a more finished-products-centric model in the region. Financially, the report shows increased net operating revenues primarily driven by this acquisition and favorable foreign currency movements, though gross profit margins experienced some compression due to the shift towards finished products and higher commodity costs. Investors should note the company's continued focus on brand strength, global reach, and operational efficiency. The company is navigating challenges such as evolving consumer preferences, health concerns related to sugar-sweetened beverages, and the inherent risks of global operations, including currency fluctuations and commodity price volatility. Despite these challenges, The Coca-Cola Company emphasizes its strong brand portfolio, extensive distribution network, and strategic priorities aimed at long-term sustainable growth and shareholder value creation.
Feb 23, 2012
2010
COCA COLA CO Annual Report, Year Ended Dec 31, 2010
The Coca-Cola Company's 2010 10-K filing highlights a transformative year, primarily driven by the significant acquisition of Coca-Cola Enterprises Inc.'s (CCE) North American business in October 2010. This strategic move fundamentally reshaped the company's operational structure and financial footprint, consolidating a substantial portion of its North American bottling and distribution operations. The acquisition, coupled with related transactions such as entering into license agreements with Dr Pepper Snapple Group, Inc. (DPS) and divesting Norwegian and Swedish bottling operations, led to substantial increases in net operating revenues and total assets, alongside a significant rise in long-term debt. Financially, the year saw strong growth in net income attributable to shareowners, largely bolstered by a substantial gain recognized from the remeasurement of the equity investment in CCE to fair value upon acquisition. Despite increased operating expenses and interest expense due to the expanded operations and debt, the company demonstrated robust cash flow generation from operations. Management emphasized continued focus on strategic priorities including global beverage leadership, innovation, and leveraging its balanced geographic portfolio to drive long-term sustainable growth and shareholder value.
Feb 28, 2011
2009
COCA COLA CO Annual Report, Year Ended Dec 31, 2009
The Coca-Cola Company's 2009 10-K report, filed in early 2010, details a year characterized by resilience in unit case volume despite challenging macroeconomic conditions. Key financial highlights for 2009 include a 3% decrease in net operating revenues to $30.99 billion, influenced by unfavorable currency fluctuations partially offset by global volume growth. Net income attributable to shareowners saw a significant increase of 18% to $6.82 billion, or $2.93 per diluted share, driven by lower operating expenses and a favorable tax rate. The company continued to return value to shareholders through dividends, which increased by 8% to $1.64 per share, and share repurchases, with $1.5 billion in stock repurchased during the year. Looking ahead, Coca-Cola announced a significant transaction to acquire Coca-Cola Enterprises' North American operations, signaling strategic moves to strengthen its core business and market position.
Feb 26, 2010
2008
COCA COLA CO Annual Report, Year Ended Dec 31, 2008
For the fiscal year ended December 31, 2008, The Coca-Cola Company reported strong revenue growth, with net operating revenues increasing by 11% to $31.9 billion, driven by a combination of volume growth across most segments and favorable foreign currency impacts. Despite facing a challenging economic environment, the company demonstrated resilience, with unit case volume increasing by 5% globally, led by strong performance in Eurasia and Africa, Latin America, and the Pacific regions. North America saw a slight decline of 1% in unit case volume, attributed to economic headwinds and price increases. The company continued to invest in its brand portfolio and global distribution system, while also managing expenses effectively. Operating income saw a healthy increase of 16% to $8.4 billion. However, net income experienced a slight decrease of 3% to $5.8 billion, largely due to a significant increase in equity losses, primarily from impairments at Coca-Cola Enterprises Inc. (CCE). This highlights the impact of the global economic downturn on key strategic investments. The company also maintained its commitment to shareowners through dividends, increasing its quarterly dividend by 8% in February 2009.
Feb 26, 2009
2007
COCA COLA CO Annual Report, Year Ended Dec 31, 2007
The Coca-Cola Company's 2007 10-K filing reveals a robust year characterized by significant revenue growth, driven largely by strategic acquisitions and expanding global unit case volume. Net operating revenues increased by 20% to $28.9 billion, with international operations continuing to be the primary revenue driver, accounting for 74% of the total. The company successfully integrated several key acquisitions, including glacéau, 18 German bottling operations, Fuze, and Leao Junior, which bolstered its portfolio, particularly in the still beverage and enhanced water categories. Despite a slight dip in North American unit case volume, global unit case volume saw a healthy 6% increase, signaling strong consumer demand worldwide. Profitability was impacted by increased costs of goods sold and selling, general, and administrative expenses, partly due to integration costs and higher commodity prices. However, the company demonstrated strong operational income growth of 15%. Coca-Cola continued its commitment to shareholder returns through a 12% increase in its quarterly dividend and ongoing share repurchases, underscoring a focus on both strategic growth and shareholder value.
Feb 28, 2008
2006
COCA COLA CO Annual Report, Year Ended Dec 31, 2006
The Coca-Cola Company's 2006 annual report (10-K) filed on February 20, 2007, highlights a strong year for the beverage giant, marked by consistent revenue growth and expansion across key international markets. The company continued to leverage its extensive brand portfolio and global distribution network, reporting increased unit case volume and gallon sales, driven by strategic marketing initiatives and product innovation, including the launch of Coca-Cola Zero in several countries. Significant investments were made in bottling operations, particularly in China and South Africa, alongside efforts to optimize efficiency and expand market reach. Despite facing challenges such as evolving consumer preferences towards healthier options and competitive pressures, Coca-Cola demonstrated resilience through its focus on diverse product offerings and strong franchise relationships.
Feb 21, 2007
2005
COCA COLA CO Annual Report, Year Ended Dec 31, 2005
The Coca-Cola Company's 2005 10-K filing reveals a robust global operation, with net operating revenues reaching $23.1 billion. The company, a leading player in the non-alcoholic beverage market, reported strong performance across most international segments, with notable growth in China, Russia, and Turkey. However, performance in India and the Philippines was impacted by affordability and availability issues, alongside lingering effects from past allegations. Key financial highlights include an increase in net income to $4.87 billion and a healthy operating income of $6.08 billion. The company continues to invest heavily in marketing and innovation, with SG&A expenses rising 11% year-over-year, driven by increased spending on new product launches and brand building. Coca-Cola also demonstrated a commitment to shareholder returns, increasing dividends and repurchasing significant amounts of its own stock. The company is actively managing risks related to foreign currency fluctuations and is navigating challenges such as evolving consumer preferences and increased competition.
Feb 28, 2006
2004
COCA COLA CO Annual Report, Year Ended Dec 31, 2004
The Coca-Cola Company's 2005 10-K filing for the fiscal year ending December 30, 2004, highlights a year of steady growth and strategic focus on enhancing shareholder value. The company reported a 4% increase in net operating revenues to $21.96 billion, driven by a 2% increase in gallon sales volume globally, with strong performance in Africa, Asia, and Latin America. Operating income saw a 9% rise to $5.7 billion, reflecting improved operational efficiency and favorable currency movements. The company also reiterated its commitment to increasing marketing and innovation spending, signaling a proactive approach to market leadership and brand development. Key strategic initiatives include strengthening core brands, expanding into new beverage segments, and improving execution across its global system. The company is actively managing its capital structure, demonstrating consistent dividend increases and significant share repurchases. While facing challenges like evolving consumer preferences and increased competition, Coca-Cola emphasized its strong brand portfolio, extensive distribution network, and dedicated workforce as key strengths. The filing also details significant legal proceedings and regulatory investigations, which the company believes will not materially impact its financial condition.
Mar 4, 2005
2003
COCA COLA CO Annual Report, Year Ended Dec 31, 2003
This 10-K filing for The Coca-Cola Company for the period ending December 30, 2003, highlights a strong global business with net operating revenues reaching $21.04 billion, an 8% increase from the previous year. The company continued its strategic focus on accelerating carbonated soft drink growth, selectively broadening its brand portfolio, and enhancing system profitability with bottling partners. Despite a 4% decrease in operating income to $5.22 billion, largely due to $573 million in streamlining charges mainly in North America and Germany, the company demonstrated resilience. Key financial strengths include robust cash flow generation, a $3.48 billion increase in cash and cash equivalents, and a commitment to returning value to shareholders through consistent dividend increases and share repurchases. The company also navigated challenges such as global economic and political uncertainties, consumer health trends, and operational streamlining, which involved the separation of approximately 3,700 employees.
Feb 27, 2004
2002
COCA COLA CO Annual Report, Year Ended Dec 31, 2002
The Coca-Cola Company's 2002 Form 10-K (filed March 26, 2003) shows a year of solid operating growth overshadowed by a sharp drop in reported earnings. Net operating revenues rose 12% to $19.564 billion, driven by 5% growth in gallon shipments, 3% from price and mix, and 6% from structural changes (chiefly the consolidation of CCEAG, the German bottler, plus CCDA, CBC and Odwalla). Operating income grew only 2% to $5.458 billion, and operating margin fell to 27.9% from 30.5%, reflecting lower-margin consolidated bottling operations and a $365 million stock-based compensation expense recognized for the first time under SFAS 123. Currency headwinds were significant, with a stronger U.S. dollar reducing operating income by about 3%. Reported net income fell 23% to $3.050 billion, or $1.23 per diluted share, versus $1.60 in 2001. The decline is attributable to a $926 million after-tax cumulative effect charge from adopting SFAS 142 (goodwill and intangibles accounting), comprising $367 million for Company operations and $559 million for equity investees. Excluding that charge, income before accounting change was essentially flat at $3.976 billion. Other income was also pressured by a $157 million Latin America write-down and about $118 million in exchange losses. For investors, the balance sheet and cash flow remain strong: operating cash flow rose 15% to $4.742 billion, and the company paid $1.987 billion in dividends and repurchased about $691 million of stock. Management guided to roughly $1.5 billion in 2003 buybacks, a dividend increase to $0.88 annualized (the 41st consecutive annual increase), and a gradual reduction of the payout ratio, which was about 65%. Management also stopped providing quarterly or annual EPS guidance and announced a 2003 restructuring charge of roughly $400 million tied to North American integration and CCEAG plant closures. Ongoing risks include Latin American economic instability, the European Commission and Spanish competition investigations, and the Aqua-Chem litigation, which management does not expect to be material.
Mar 26, 2003
2001-A
COCA COLA CO Annual Report (Amendment), Year Ended Dec 31, 2001
This filing is Amendment No. 1 to The Coca-Cola Company's 2001 Form 10-K. It was filed solely to correct a typographical error in the 2000 'Balance at end of year' cash figure in Exhibit 13.1 (Annual Report), changing $1,891 million to $1,819 million. No other changes were made, so the underlying 2001 results are those of the original annual report. The amended exhibit shows a strong rebound in 2001. Net operating revenues rose 1% to $20.1 billion, while operating income jumped 45% to $5.35 billion, helped by the absence of roughly $1.44 billion in 2000 nonrecurring charges. Diluted EPS rose to $1.60 from $0.88, and operating cash flow grew 15% to $4.1 billion, producing free cash flow of $3.1 billion. Gross margin improved to 69.9% and operating margin to 26.6%. Looking forward, management is signaling a shift in capital allocation. The quarterly dividend was raised to $0.20 ($0.80 annualized, the 40th consecutive annual increase), but the board intends to gradually lower the payout ratio from about 45% to 30% of net income to free cash for reinvestment. Share repurchases are expected to rise to $750 million to $1 billion in 2002. Key items for investors include a non-cash charge of roughly $1 billion pretax on adopting SFAS 142 in Q1 2002, the planned reclassification of about $2.6 billion of payments to bottlers and customers from SG&A into revenue deductions under EITF 00-25 (which lowers reported revenue but not operating income), the assumption of control of German bottler CCEAG (adding $700 to $800 million of debt), and expected effective tax rate of about 27.5% in 2002.
Mar 13, 2002
2001
COCA COLA CO Annual Report, Year Ended Dec 31, 2001
The Coca-Cola Company's 2001 Form 10-K shows a year of strong profit recovery after a difficult 2000. Net operating revenues rose 1% to $20.1 billion, while operating income jumped 45% to $5.35 billion, lifted by the absence of 2000's $1.44 billion in nonrecurring charges (impairments, the Realignment restructuring, and a discrimination lawsuit settlement). Net income reached $3.97 billion, or $1.60 per diluted share, up from $0.88 the prior year. Gross margin improved to 69.9% and operating margin to 26.6%. Management also cited a stronger U.S. dollar as a headwind, reducing operating income by about 5% in 2001. Cash generation and balance-sheet discipline were a key theme. Operating cash flow rose 15% to $4.11 billion and free cash flow reached $3.15 billion. Management used that cash to cut net debt from $3.9 billion to $3.3 billion, and net debt-to-net capital fell to 23% from 29%. The company's credit ratings (S&P A+, Moody's Aa3) remained strong. Dividends rose to $0.72 per share for 2001, and the board raised the 2002 quarterly dividend to $0.20. Management intends to gradually lower the payout ratio toward 30% to free cash for reinvestment, and expects 2002 share repurchases of $750 million to $1 billion. Investors should note several forward-looking items. Adoption of SFAS 142 is expected to produce a non-cash pretax charge of roughly $1 billion in Q1 2002, while EITF 00-25 will reclassify about $2.6 billion of payments to bottlers and customers from SG&A into revenue reductions, which will lower reported net revenues without affecting operating income. The company also plans to assume management control of CCEAG, Germany's largest bottler, adding $700-800 million to debt. Legal risk includes a consolidated securities class action in which the motion to dismiss is pending. The filing also highlights ongoing dependence on Coca-Cola Enterprises, which accounted for about 19% of net operating revenues through concentrate sales.
Mar 11, 2002
2000
COCA COLA CO Annual Report, Year Ended Dec 31, 2000
The Coca-Cola Company's 2000 10-K reflects a year of earnings pressure driven by nonrecurring charges, though the core concentrate franchise remained intact. Net operating revenues grew 3% to $20.5 billion, but operating income fell 7% to $3.7 billion and net income declined 10% to $2.18 billion, or $0.88 per share. Results were weighed down by about $1.44 billion of other operating charges, including roughly $850 million for the Realignment workforce restructuring (about 5,200 employees separated), $405 million of Indian bottling asset impairments, and $188 million for a class action discrimination settlement. Equity losses of $289 million, driven by a $306 million Coca-Cola Amatil charge and Panamco writedowns, further reduced earnings. Excluding these items, the dividend payout ratio would have been about 45% rather than 77%. Cash generation and the balance sheet remained strong. Operating cash flow was $3.6 billion and free cash flow rose to $2.8 billion, supporting a dividend increased to $0.72 annualized for 2001, the 39th consecutive annual increase. Net debt fell to $3.9 billion, with a net debt-to-net capital ratio of 29% and A+/Aa3 credit ratings. The company did not repurchase shares in 2000 but signaled a return to buybacks in 2001 under the 1996 authorization. Management also intends to gradually reduce the dividend payout ratio toward 30% to free cash for high-return beverage investments. Looking forward, management announced a significant strategic reorganization on March 4, 2001 into four business units (Americas, Asia, Europe/Africa, and Coca-Cola Ventures) and portfolio reshaping, including a proposed 50/50 juice venture with P&G, the Philippines bottling transaction with San Miguel, restructuring of the Nordic bottlers, and the Beverage Partners Worldwide joint venture with Nestle. The departure of President and COO Jack Stahl adds leadership transition risk. Investors should weigh the operational recovery potential against ongoing securities class action litigation over late-1999 and early-2000 disclosures, which the company intends to defend vigorously.
Mar 7, 2001
1999
COCA COLA CO Annual Report, Year Ended Dec 31, 1999
The Coca-Cola Company's 1999 Form 10-K shows a year of sharp earnings deterioration driven by a fourth-quarter $813 million pretax charge (other operating charges), even as underlying volume and cash generation held up. Net operating revenues rose 5% to $19.8 billion, but operating income fell 20% to $3.98 billion and net income fell 31% to $2.43 billion, or $0.98 per diluted share, versus $1.42 in 1998. Excluding the charges, management's narrative points to a business still growing: unit case volume rose nearly 2%, free cash flow increased 24% to $2.33 billion, and operating cash flow reached $3.9 billion. Investors should note, however, that the charges, the 1999 equity losses of $184 million, and a stronger U.S. dollar (which reduced operating income by about 4%) weighed heavily on results. Balance sheet leverage rose meaningfully during 1999. Net debt climbed to $4.5 billion from $3.3 billion as the company spent about $1.9 billion on acquisitions and investments, including Cadbury Schweppes brands, Indian and Japanese bottlers, and a larger stake in Embotelladora Arica. Total debt reached $6.2 billion, and the company repurchased essentially no shares. Management also said it intends to gradually lower the dividend payout ratio toward 30% from roughly 65% to free cash for reinvestment, which signals a strategic shift that dividend-focused investors should weigh. Looking ahead, the company announced a realignment that will eliminate about 6,000 positions during 2000 and produce a pretax charge of roughly $800 million, with an expected annual expense saving of about $300 million. It also expects bottler inventory reductions in the first half of 2000 to reduce diluted EPS by roughly $0.11 to $0.13. The filing also flags a $302 million Brazilian tax assessment against a subsidiary, which management believes will not have a material adverse effect.
Mar 9, 2000
1998
COCA COLA CO Annual Report, Year Ended Dec 31, 1998
The Coca-Cola Company's 1998 Form 10-K shows a company that still earns extraordinary returns on a concentrate-based model, but with clear signs of slowing earnings momentum. Net operating revenues were essentially flat at $18.8 billion (versus $18.9 billion in 1997), and unit case volume grew 6% to 15.8 billion cases, helped by emerging-market expansion. Gross margin rose to 70% from 68% largely because the company sold previously consolidated bottling operations in Italy and shifted toward higher-margin concentrate sales. However, operating income was roughly flat at $4.97 billion, and net income fell about 14% to $3.53 billion ($1.42 diluted EPS) as 1997 included large one-time gains on bottler stock issuances and asset sales that did not repeat. The stronger U.S. dollar reduced operating income by about 9%. Balance sheet and cash flow trends warrant attention. Free cash flow fell sharply to $1.27 billion from $3.53 billion, as operating cash flow declined 15% and investment spending rose to $2.16 billion, including acquisitions of Indian and Russian bottlers. Total debt climbed to $5.1 billion from $3.9 billion, pushing net debt to $3.3 billion from $2.0 billion and the net debt-to-net capital ratio to 28% from 22%. Management still returned about $1.6 billion through share repurchases and raised the quarterly dividend to $0.16, while signaling a long-term intent to lower the payout ratio to 30% to free cash for reinvestment. Equity method investments in bottlers, notably Coca-Cola Enterprises (about 42% owned, with a fair value roughly $5.5 billion above carrying value), represent a significant hidden asset base. Pending transactions could reshape the portfolio. The $1.85 billion Cadbury Schweppes brand acquisition, the roughly $890 million Orangina purchase in France, and the Japanese Coca-Cola West Japan anchor bottler formation are all subject to regulatory approvals. Year 2000 remediation costs are estimated at $130 to $160 million, and the company reports that it expects no material impact from the Euro conversion. The Brazilian excise tax assessment, roughly $530 million including interest and penalties, was dismissed at the first level but remains subject to a pending appeal, and management does not consider it material to the company's financial condition.
Mar 29, 1999
1997
COCA COLA CO Annual Report, Year Ended Dec 31, 1997
The Coca-Cola Company's 1997 Form 10-K shows a year of strong earnings growth driven largely by non-operating gains and portfolio restructuring of its bottling system. Net operating revenues were essentially flat at $18.9 billion (up 1%), while gross margin expanded to 68% from 64% after the 1996 sale of consolidated bottling operations in France, Belgium and eastern Germany shifted revenue toward the higher-margin concentrate business. Operating income rose 28% to $5.0 billion, though this comparison benefits from roughly $276 million of 1996 nonrecurring charges. Net income climbed 18% to $4.13 billion, and diluted EPS rose 19% to $1.64, helped by about $1.1 billion of pretax gains on bottling divestitures and stock issuances by equity investees. Cash generation and capital returns remained strong. Operating cash flow reached $4.0 billion, free cash flow (operating cash flow less investing outflows) was $3.5 billion, and net debt fell to $2.0 billion from $2.8 billion, with net debt-to-net capital declining to 22%. The Company repurchased about $1.3 billion of stock and raised the quarterly dividend to $.15 per share, while the Board signaled an intent to gradually lower the payout ratio toward 30% to free cash for higher-return beverage investments. Management also disclosed a letter of intent to acquire Orangina (about $850 million), and proposed transactions to transfer Italian and South Korean bottling assets to Coca-Cola Beverages and Coca-Cola Amatil (valued at about $979 million and $588 million). Investors should weigh the headline growth against its quality. The 1997 earnings include substantial one-time items, and the stock's value is supported by large unrealized gains on equity stakes, including Coca-Cola Enterprises (about 44% owned), where market value exceeds carrying value by roughly $5.8 billion. Key risks disclosed include a pending Brazilian tax assessment of about $530 million (the Company reports it was dismissed at the first level and is under appeal), exposure to emerging-market currencies (with the basket of selected currencies weakening 10% against the dollar in 1997), and Year 2000 remediation, which management expects will not be material.
Mar 9, 1998
1993
COCA COLA CO Annual Report, Year Ended Dec 31, 1993
The Coca-Cola Company's 1993 10-K shows a company whose soft drink concentrate business dominates both revenue and profit. Soft drinks produced 87% of 1993 net operating revenues ($13.96 billion consolidated, up 7% from $13.07 billion) and 96% of operating income. Operating income rose 12% to $3.10 billion, with operating margin expanding to 22% from 21% as gross margin improved to 63% from 61%. Net income reached $2.18 billion, or $1.67 per share, up from $1.26 in 1992 (which absorbed a $219 million accounting charge), while income before accounting changes grew 17% to $1.68 per share. The Company generated $2.51 billion in operating cash flow and $1.62 billion of free cash flow after reinvestment, and repurchased roughly $586 million of stock during the year. The balance sheet and capital allocation picture is conservative. Total debt fell to $3.10 billion from $3.21 billion, the total-debt-to-total-capital ratio improved to 40.3% from 45.2%, and the Company holds AA (S&P) and Aa3 (Moody's) credit ratings. Management is targeting a dividend payout near 40% of net income and raised the 1994 quarterly dividend to $0.195, an annualized $0.78, the 32nd consecutive annual increase. Management cites an after-tax cost of capital of roughly 11% and reports Economic Profit of $1.5 billion, up from $1.3 billion. The main risks flagged are international exposure (about 79% of operating income came from outside the United States, which carries currency and political risk), upward pressure on the effective tax rate from 1993 U.S. tax law changes affecting Puerto Rico operations, and litigation. The most significant legal matter is a Seven-Up Company suit seeking at least $500 million in punitive damages, with trial set for mid-1994. A Tri-Star-related shareholder suit was also remanded for trial. Management believes both cases are defensible and that other proceedings will not be materially adverse.
Mar 14, 1994