COCA COLA CO Quarterly Report for Q3 Ended Jul 3, 2009

Summary

The Coca-Cola Company's (KO) Q2 2009 report shows resilience amidst a challenging economic environment, with net income attributable to shareowners increasing to $2.04 billion, up from $1.42 billion in the prior year's quarter. Diluted EPS also saw a significant rise to $0.88 from $0.61. Despite a decrease in net operating revenues, largely driven by unfavorable currency fluctuations and strategic divestitures, the company demonstrated strong operational execution and cost management. Key financial highlights include a robust increase in cash and cash equivalents to $7.65 billion, indicating strong liquidity. The company also continued its focus on operational efficiency through restructuring and productivity initiatives. While facing headwinds from a stronger U.S. dollar, the company's diverse geographic footprint and brand strength supported its performance, with positive volume growth observed in key international markets like Eurasia & Africa and Latin America.

Key Highlights

• 1Consolidated net income attributable to shareowners rose to $2.04 billion for the quarter, up from $1.42 billion in Q2 2008.
• 2Diluted earnings per share (EPS) increased to $0.88 from $0.61 year-over-year.
• 3Net operating revenues decreased by 9% to $8.27 billion, primarily due to unfavorable currency fluctuations and structural changes from divestitures.
• 4Cash and cash equivalents increased significantly to $7.65 billion as of July 3, 2009, up from $4.70 billion at the end of 2008.
• 5Worldwide unit case volume increased by 4% in the quarter, driven by strong performance in Eurasia & Africa and Latin America.
• 6The company incurred $72 million in other operating charges, including restructuring costs, asset impairment, and productivity initiatives.

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