01—Abstract
Summary
Summary of the 10-K filed February 27, 2014. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 billionb. 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.
02—Key points
Key Highlights
- The Coca-Cola Company reported net operating revenues of $46.85 billion for the year ended December 31, 2013, with international operations accounting for 58% of this figure.
- Net income attributable to shareowners was $8.58 billion, reflecting strong profitability despite a slight year-over-year decrease in net operating revenues.
- The company continued its strategy of expanding its brand portfolio and geographic reach, with significant investments and partnerships highlighted.
- A key operational focus was the integration and optimization of North American bottling operations following the 2010 acquisition of CCE's former North America business.
- The company demonstrated financial discipline by returning capital to shareholders through dividends (totaling $4.97 billion) and share repurchases (totaling $4.83 billion in treasury stock purchases).
- Coca-Cola highlighted strategic priorities including accelerating sparkling beverage growth, expanding its still beverage portfolio, and increasing media investments through productivity improvements.
- The report acknowledges challenges such as evolving consumer preferences (health and wellness trends), increased competition, and the impact of global economic and currency fluctuations.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Coca Cola Co kept $0.18.
- Revenue$46.85B100.0%
- Cost of revenue−$18.42B39.3%
- Gross profit$28.43B60.7%
- Operating costs−$18.20B38.9%
- Operating income$10.23B21.8%
- Interest, other & tax−$1.64B3.5%
- Net income$8.58B18.3%
Where FY2013 revenue went
$46.85B- Cost of revenue: $18.42B, 39% of revenue
- SG&A: $17.31B, 37% of revenue
- Net income: $8.58B, 18% of revenue
- Other operating costs: $895.0M, 1.9% of revenue
- Interest, other & tax: $1.64B, 3.5% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 27, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $46.85B$48.02B | −2.4% |
| Cost of Revenue | $18.42B$19.05B | −3.3% |
| Gross Profit | $28.43B$28.96B | −1.8% |
| SG&A Expenses | $17.31B$17.74B | −2.4% |
| Operating Income | $10.23B$10.78B | −5.1% |
| Interest Expense | $463.00M$397.00M | +16.6% |
| Net Income | $8.58B$9.02B | −4.8% |
| EPS (Basic) | $1.94$2.00 | −3.0% |
| EPS (Diluted) | $1.90$1.97 | −3.6% |
| Shares Outstanding (Basic) | 4.43B4.50B | −1.6% |
| Shares Outstanding (Diluted) | 4.51B4.58B | −1.6% |
05—Questions
Frequently Asked Questions
What was Coca-Cola's revenue in 2013?
Coca-Cola reported net operating revenues of $46.85 billion for the year ended December 31, 2013.
How did international operations contribute to Coca-Cola's revenue in 2013?
International operations accounted for $27.03 billion, or 58%, of Coca-Cola's total net operating revenues in 2013.
What were the main drivers of the decrease in net operating revenues in 2013 compared to 2012?
The decrease was primarily attributed to foreign currency fluctuations (a 2% unfavorable impact) and structural changes, partially offset by favorable price, product, and geographic mix.
How did Coca-Cola return capital to shareholders in 2013?
In 2013, Coca-Cola paid $1.12 per share in dividends, totaling $4.97 billion, and repurchased $4.83 billion of its common stock for treasury.
What are some of the key risks identified by Coca-Cola in its 2013 report?
Key risks include concerns about obesity impacting demand for sugar-sweetened beverages, water scarcity, evolving consumer preferences, increased competition, product safety and quality issues, and fluctuations in foreign currency exchange rates.
06—Continue