Summary
The Coca-Cola Company's Q3 2008 report shows a strong increase in net operating revenues and operating income, driven by a combination of volume growth, favorable price/mix, and a significant positive impact from foreign currency fluctuations. Despite global economic headwinds, the company demonstrated resilience, with notable volume growth in emerging markets like Eurasia & Africa and Latin America, while North America experienced a slight decline. Key financial highlights include robust growth in net income and diluted EPS compared to the prior year's quarter. The company also maintained a strong liquidity position, with a substantial cash balance and access to credit facilities. Investments in acquisitions and strategic initiatives, such as productivity programs and the potential acquisition of China Huiyuan Juice Group, indicate a forward-looking approach to growth and efficiency, even amidst broader market uncertainties.
Financial Highlights
29 data points| Revenue | $8.39B |
| Cost of Revenue | $3.02B |
| Gross Profit | $5.37B |
| SG&A Expenses | $3.14B |
| Operating Income | $2.19B |
| Interest Expense | $111.00M |
| Net Income | $1.89B |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 4.62B |
| Shares Outstanding (Diluted) | 4.66B |
Key Highlights
- 1Net operating revenues increased by 9% to $8.4 billion for the third quarter, driven by concentrate sales volume growth, favorable price/product/geographic mix, and a significant positive currency impact.
- 2Operating income grew by 20% to $2.2 billion for the quarter, with an operating margin improvement to 26.1% from 23.8% in the prior year.
- 3Net income rose to $1.89 billion ($0.81 diluted EPS) from $1.65 billion ($0.71 diluted EPS) in the same quarter of the previous year.
- 4Worldwide unit case volume increased by 5% in the third quarter, with strong performance in Eurasia & Africa (+9%) and Latin America (+8%), partially offset by a 2% decline in North America.
- 5The company ended the quarter with a strong cash and cash equivalents balance of $7.8 billion, providing significant financial flexibility.
- 6Strategic investments in acquisitions and productivity initiatives are ongoing, with a notable announced intention to acquire China Huiyuan Juice Group for approximately $2.4 billion.