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10-QPeriod: Q1 FY2013

COCA COLA CO Quarterly Report for Q1 Ended Mar 29, 2013

Filed April 25, 2013For Securities:KO

Summary

The Coca-Cola Company's first quarter 2013 results, filed on April 24, 2013, show a slight decrease in net operating revenues to $11,035 million from $11,137 million in the prior year's comparable period. This was primarily driven by a 2% decrease in concentrate sales volume and an unfavorable foreign currency impact of 2%, partially offset by positive price, product, and geographic mix. Consolidated net income attributable to shareowners decreased to $1,751 million ($0.39 per diluted share) from $2,054 million ($0.45 per diluted share) in the first quarter of 2012. Despite the revenue dip, the company demonstrated strong operational execution. The company repurchased approximately $1.5 billion of its stock during the quarter and managed its debt effectively, issuing $2.5 billion in new long-term debt while redeeming a portion of its existing debt. Significant strategic events included the sale of a majority stake in its Philippine bottling operations, which contributed to a decrease in "Assets held for sale" and an increase in "Equity method investments."

Financial Statements
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Key Highlights

  • 1Net operating revenues decreased slightly by 1% to $11,035 million, primarily due to currency headwinds and a 2% decline in concentrate sales volume, though this was partially offset by positive price/mix.
  • 2Consolidated net income attributable to shareowners declined to $1,751 million ($0.39 per diluted share) from $2,054 million ($0.45 per diluted share) in the prior year's quarter.
  • 3The company completed the sale of a majority ownership interest in its Philippine bottling operations, resulting in a significant decrease in 'Assets held for sale' and an increase in 'Equity method investments'.
  • 4Operating income and margins saw some pressure, particularly in North America, impacted by factors like fewer selling days and strategic decisions in the ready-to-drink tea category.
  • 5Significant debt management activities occurred, including the issuance of $2.5 billion in new long-term debt and the redemption of approximately $1 billion in existing debt.
  • 6The company repurchased $1.5 billion of its stock during the quarter, demonstrating a commitment to returning capital to shareholders.
  • 7Geographic performance varied, with strong unit case volume growth in Eurasia & Africa (15%) and Latin America (4%), while Europe remained flat and North America saw a 1% increase.

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