01—Abstract
Summary
Summary of the 10-K filed February 26, 2010. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 $1.64b 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.
02—Key points
Key Highlights
- Net operating revenues decreased by 3% to $30.99 billion in 2009, primarily due to unfavorable currency fluctuations, partially offset by global unit case volume growth.
- Net income attributable to shareowners increased by 18% to $6.82 billion ($2.93 per diluted share), driven by improved cost management and a lower effective tax rate.
- Worldwide unit case volume grew by 3% in 2009, with strong performance in the Pacific and Latin America segments, though North America experienced a 2% decline.
- The company continued its commitment to shareholder returns by increasing dividends by 8% to $1.64 per share and repurchasing $1.5 billion of its stock.
- Coca-Cola announced a significant agreement to acquire Coca-Cola Enterprises' North American operations, expected to close in late 2010.
- Significant investments were made in productivity initiatives, with $107 million incurred in 2009, aiming for $500 million in annualized savings by 2011.
- The company highlighted its strong liquidity position, with $7.02 billion in cash and cash equivalents and $2.13 billion in short-term investments at year-end 2009.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Coca Cola Co kept $0.22.
- Revenue$30.99B100.0%
- Cost of revenue−$11.09B35.8%
- Gross profit$19.90B64.2%
- Operating costs−$11.67B37.7%
- Operating income$8.23B26.6%
- Interest, other & tax−$1.41B4.5%
- Net income$6.82B22.0%
Where FY2009 revenue went
$30.99B- SG&A: $11.36B, 37% of revenue
- Cost of revenue: $11.09B, 36% of revenue
- Net income: $6.82B, 22% of revenue
- Other operating costs: $313.0M, 1.0% of revenue
- Interest, other & tax: $1.41B, 4.5% of revenue
Kept 22% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 26, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $30.99B$31.94B | −3.0% |
| Cost of Revenue | $11.09B$11.37B | −2.5% |
| Gross Profit | $19.90B$20.57B | −3.2% |
| SG&A Expenses | $11.36B$11.77B | −3.5% |
| Operating Income | $8.23B$8.45B | −2.5% |
| Interest Expense | $355.00M$438.00M | −18.9% |
| Net Income | $6.82B$5.81B | +17.5% |
| EPS (Basic) | $1.48$1.25 | +17.5% |
| EPS (Diluted) | $1.47$1.25 | +17.7% |
| Shares Outstanding (Basic) | 4.63B4.63B | 0.0% |
| Shares Outstanding (Diluted) | 4.66B4.67B | −0.3% |
05—Questions
Frequently Asked Questions
What was Coca-Cola's financial performance in 2009?
In 2009, Coca-Cola reported a 3% decrease in net operating revenues to $30.99 billion, largely due to unfavorable currency exchange rates. However, net income attributable to shareowners increased by 18% to $6.82 billion ($2.93 per diluted share), driven by cost efficiencies and a lower effective tax rate. Unit case volume saw a 3% increase globally, indicating resilience in demand.
How did Coca-Cola return value to shareholders in 2009?
The company demonstrated its commitment to shareholder returns by increasing its quarterly dividend by 8% to $1.64 per share and repurchasing approximately $1.5 billion worth of its common stock during 2009.
What are Coca-Cola's key strategic initiatives or significant events reported for 2009?
A major strategic development was the announcement of the agreement to acquire Coca-Cola Enterprises' North American operations, expected to close in late 2010. The company also continued its investment in productivity initiatives, incurring $107 million in 2009 to achieve significant annualized savings. The report also notes the company's strong liquidity position with substantial cash reserves.
What were the main risks and challenges identified by Coca-Cola in its 2009 report?
Key risks highlighted include potential negative impacts from obesity and health concerns, water scarcity and quality issues, evolving consumer preferences, intense competition, foreign currency fluctuations, and the general impact of unfavorable economic conditions on consumer spending. The company also noted risks related to its relationships with bottling partners and potential increases in taxes and regulations.
06—Continue