01—Abstract
Summary
Summary of the 10-K filed February 25, 2015. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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.
02—Key points
Key Highlights
- Coca-Cola is the world's largest beverage company with over 500 brands and operations in over 200 countries.
- The company is actively refranchising its North American bottling territories, a process expected to continue through 2020.
- Strategic partnerships, including with Keurig Green Mountain and Monster Beverage Corporation, are key to future growth and innovation.
- Net operating revenues for 2014 were $45.998 billion, a slight decrease from 2013, impacted by currency fluctuations and structural changes.
- Operating income was $9.708 billion, reflecting effective cost management and productivity initiatives.
- The company demonstrated a consistent return of capital to shareholders through dividends and share repurchases.
- Significant focus on 'productivity and reinvestment' programs aims to generate substantial annualized savings to fuel brand investments and growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2014, Coca Cola Co kept $0.15.
- Revenue$46.00B100.0%
- Cost of revenue−$17.89B38.9%
- Gross profit$28.11B61.1%
- Operating costs−$18.40B40.0%
- Operating income$9.71B21.1%
- Interest, other & tax−$2.61B5.7%
- Net income$7.10B15.4%
Where FY2014 revenue went
$46.00B- Cost of revenue: $17.89B, 39% of revenue
- SG&A: $17.22B, 37% of revenue
- Net income: $7.10B, 15% of revenue
- Other operating costs: $1.18B, 2.6% of revenue
- Interest, other & tax: $2.61B, 5.7% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2014filed February 25, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $46.00B$46.85B | −1.8% |
| Cost of Revenue | $17.89B$18.42B | −2.9% |
| Gross Profit | $28.11B$28.43B | −1.1% |
| SG&A Expenses | $17.22B$17.31B | −0.5% |
| Operating Income | $9.71B$10.23B | −5.1% |
| Interest Expense | $483.00M$463.00M | +4.3% |
| Net Income | $7.10B$8.58B | −17.3% |
| EPS (Basic) | $1.62$1.94 | −16.5% |
| EPS (Diluted) | $1.60$1.90 | −15.8% |
| Shares Outstanding (Basic) | 4.39B4.43B | −1.1% |
| Shares Outstanding (Diluted) | 4.45B4.51B | −1.3% |
05—Questions
Frequently Asked Questions
What were the main financial results for Coca-Cola in 2014?
In 2014, Coca-Cola reported net operating revenues of $45.998 billion, a slight decrease from $46.854 billion in 2013. Net income attributable to shareowners was $7.098 billion, down from $8.584 billion in 2013. Operating income was $9.708 billion.
What are Coca-Cola's key strategic initiatives mentioned in the 2014 report?
Key strategic initiatives include the refranchising of North American bottling territories, expanding productivity and reinvestment programs to drive cost savings and fuel growth, and strengthening strategic relationships with partners like Keurig Green Mountain and Monster Beverage Corporation.
How did currency fluctuations impact Coca-Cola's 2014 results?
Foreign currency fluctuations had an unfavorable impact, decreasing net operating revenues by 2% and operating income by 6% in 2014, primarily due to a stronger U.S. dollar against many international currencies.
What is the company's approach to returning capital to shareholders?
Coca-Cola continues to return capital to shareholders through regular quarterly dividends, which have increased for 53 consecutive years, and share repurchases. In 2014, the company repurchased approximately $4.2 billion of its stock.
06—Continue