10-KPeriod: FY2008

COCA COLA CO Annual Report, Year Ended Dec 31, 2008

Filed February 26, 2009For Securities:KO

Summary

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.

Financial Highlights

49 data points
Beta

Revenue

$31.94B

64.4% Gross Margin

Net Income

$5.81B

18.2% Net Margin

EPS (Diluted)

$1.25

Total Assets

$40.52B

Cash & Equivalents

$4.70B

Free Cash Flow

$5.60B

Financial Statements
Beta
Revenue$31.94B
Cost of Revenue$11.37B
Gross Profit$20.57B
SG&A Expenses$11.77B
Operating Income$8.45B
Interest Expense$438.00M
Net Income$5.81B
EPS (Basic)$1.25
EPS (Diluted)$1.25
Shares Outstanding (Basic)4.63B
Shares Outstanding (Diluted)4.67B

Key Highlights

  • 1Net operating revenues grew 11% to $31.9 billion.
  • 2Global unit case volume increased by 5%, with strong performance in Eurasia & Africa, Latin America, and Pacific segments.
  • 3Operating income rose 16% to $8.4 billion, indicating effective cost management.
  • 4Net income decreased by 3% to $5.8 billion, impacted by significant equity losses from CCE impairments.
  • 5The company announced an 8% increase in its quarterly dividend, marking its 47th consecutive annual increase.
  • 6Significant investments in acquisitions, including brands and licenses from Carlsberg, and a proposed acquisition of Huiyuan Juice Group, demonstrate a continued focus on portfolio expansion.

Frequently Asked Questions

In 2008, Coca-Cola reported a 11% increase in net operating revenues to $31.9 billion and a 16% increase in operating income to $8.4 billion. However, net income saw a slight decrease of 3% to $5.8 billion due to significant impairment charges at a key equity investment, CCE. Global unit case volume grew by 5%, showcasing the company's ability to navigate a challenging economic climate.

Performance varied by region. Eurasia and Africa, Latin America, and the Pacific segments showed strong unit case volume growth. North America experienced a 1% decline in unit case volume, attributed to economic conditions and bottler price increases. Europe saw a modest 3% growth in unit case volume.

While revenue and operating income grew, net income was impacted by a significant equity loss of $874 million, primarily driven by $1.6 billion in impairment charges recorded by Coca-Cola Enterprises Inc. (CCE). This reflects the adverse effects of challenging macroeconomic conditions and financial market instability on some of the company's major equity investments.

Coca-Cola continued its strategy of strategic acquisitions and investments. In 2008, this included acquiring brands and licenses from Carlsberg and announcing its intention to acquire China Huiyuan Juice Group. The company also maintains significant equity stakes in major bottling operations like CCE, Coca-Cola Hellenic, Coca-Cola FEMSA, and Coca-Cola Amatil, which are crucial to its global distribution network.