Summary
Coca-Cola Company's (KO) Q2 2013 filing shows a slight decrease in net operating revenues to $12.75 billion from $13.09 billion in the prior year's comparable quarter, and a year-to-date decrease to $23.78 billion from $24.22 billion. Consolidated net income attributable to shareowners also saw a decrease for both the quarter and year-to-date periods. The company experienced growth in unit case volume globally, driven by strong performance in emerging markets like Eurasia & Africa and Latin America, although Europe and North America saw slight declines due to adverse weather and economic conditions. Significant operational activities included productivity and reinvestment programs, integration efforts in Germany, and strategic divestitures and acquisitions, such as the sale of a majority interest in Philippine bottling operations and acquisitions in Myanmar and with innocent. Cash flow from operations remained robust, supporting investments in debt securities and share repurchases. The company's financial position remained strong with ample liquidity, despite a strengthening U.S. dollar negatively impacting reported revenues and operating income. The company reiterated its positive near-term outlook and commitment to returning value to shareholders through dividends and share repurchases.
Financial Highlights
55 data points| Revenue | $12.75B |
| Cost of Revenue | $4.99B |
| Gross Profit | $7.76B |
| SG&A Expenses | $4.38B |
| Operating Income | $3.24B |
| Interest Expense | $122.00M |
| Net Income | $2.68B |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.59 |
| Shares Outstanding (Basic) | 4.45B |
| Shares Outstanding (Diluted) | 4.53B |
Key Highlights
- 1Net operating revenues for the second quarter of 2013 decreased by 2.6% to $12.75 billion compared to $13.09 billion in the prior year period. Year-to-date net operating revenues decreased by 1.8% to $23.78 billion.
- 2Net income attributable to shareowners of The Coca-Cola Company decreased to $2.676 billion for the quarter ($0.59 per diluted share) from $2.788 billion ($0.61 per diluted share) in the prior year. Year-to-date net income attributable to shareowners decreased to $4.427 billion ($0.98 per diluted share) from $4.842 billion ($1.05 per diluted share).
- 3Global unit case volume grew by 1% for the quarter and 3% year-to-date, with particularly strong performance in emerging markets such as Eurasia & Africa (9% and 11% for the quarter and YTD, respectively) and Latin America (2% and 3% for the quarter and YTD, respectively).
- 4The company incurred significant 'other operating charges,' totaling $132 million for the quarter and $253 million year-to-date, primarily related to productivity and reinvestment programs, and integration initiatives in Germany.
- 5Cash provided by operating activities was $3.96 billion for the first six months of 2013, a decrease of 5% compared to $4.18 billion in the prior year, attributed to fewer selling days, unfavorable foreign currency fluctuations, and increased working capital.
- 6The company completed the sale of a majority ownership interest in its Philippine bottling operations and acquired additional shares of innocent (Fresh Trading Ltd.), demonstrating ongoing portfolio management.
- 7Total assets increased to $89.51 billion from $86.17 billion at the end of 2012, with notable increases in cash and short-term investments, while assets held for sale decreased significantly due to divestitures.