Summary
The Coca-Cola Company's Q2 2012 report shows a slight increase in net operating revenues to $13.1 billion for the quarter and $24.2 billion for the six months, up from $12.7 billion and $23.3 billion respectively in the prior year. Consolidated net income remained relatively stable at $2.8 billion for the quarter and increased to $4.9 billion for the six-month period. Diluted earnings per share also saw a modest increase. The company continued its strategy of investing in high-quality securities to manage counterparty risk, which impacted cash flows from investing activities significantly. Significant investments were made in Aujan Industries and bottling operations in emerging markets. The company is also actively managing its productivity and restructuring initiatives, with associated charges impacting operating expenses. Despite a strong U.S. dollar impacting international revenues, Coca-Cola demonstrated resilience with solid unit case volume growth in key international markets, particularly in Eurasia & Africa and Pacific regions. The company's balance sheet shows an increase in total assets to $85.1 billion, driven by investments and increased debt financing to support its operations and capital allocation strategies.
Financial Highlights
55 data points| Revenue | $13.09B |
| Cost of Revenue | $5.22B |
| Gross Profit | $7.86B |
| SG&A Expenses | $4.50B |
| Operating Income | $3.29B |
| Interest Expense | $112.00M |
| Net Income | $2.79B |
| EPS (Basic) | $0.62 |
| EPS (Diluted) | $0.61 |
| Shares Outstanding (Basic) | 4.51B |
| Shares Outstanding (Diluted) | 4.59B |
Key Highlights
- 1Net operating revenues increased by 2.7% for the quarter and 4.1% for the six months compared to the prior year, reaching $13.1 billion and $24.2 billion, respectively.
- 2Consolidated net income attributable to shareowners was largely flat for the quarter at $2.79 billion but increased to $4.84 billion for the six-month period.
- 3Diluted earnings per share rose slightly to $1.21 for the quarter and $2.11 for the six-month period.
- 4The company made significant investments, including in Aujan Industries in the Middle East and acquired bottling operations in Vietnam, Cambodia, and Guatemala.
- 5Cash used in investing activities increased substantially due to a shift in cash management strategy focused on investing in high-quality securities.
- 6The company continued to manage restructuring and productivity initiatives, incurring related charges but also progressing towards expected savings.
- 7Unit case volume showed positive growth across most regions, with strong performance in Eurasia & Africa and Pacific, despite a slight decline in Europe attributed to macroeconomic uncertainty and weather.