Summary
The Coca-Cola Company's first quarter 2014 results, ending March 28, 2014, indicate a slight decrease in net operating revenues to $10.576 billion from $11.035 billion in the prior year period. This decline was largely driven by unfavorable foreign currency fluctuations, which negatively impacted revenues by 4%, and structural changes from divestitures in bottling operations, particularly in the Philippines and Brazil. Despite the revenue dip, the company demonstrated resilience with stable unit case volume growth of 2% globally, supported by strong performance in Asia Pacific, which saw 7% unit case volume growth. Efforts in productivity and reinvestment continue, with ongoing initiatives aimed at optimizing the supply chain and enhancing marketing effectiveness, contributing to a gross profit margin improvement to 61.4% from 60.8% year-over-year. The company reported consolidated net income attributable to shareowners of $1.619 billion, or $0.36 per diluted share, compared to $1.751 billion, or $0.39 per diluted share, in the first quarter of 2013. A significant factor impacting net income was a substantial charge of $226 million related to the revaluation of net monetary assets in Venezuela due to currency exchange rate changes, compared to a $140 million charge in the prior year for a similar reason. The company maintains a strong liquidity position with $9.131 billion in cash and cash equivalents and $6.321 billion in available lines of credit, demonstrating its capacity to manage its operations and financial commitments.
Financial Highlights
55 data points| Revenue | $10.58B |
| Cost of Revenue | $4.08B |
| Gross Profit | $6.49B |
| SG&A Expenses | $3.99B |
| Operating Income | $2.38B |
| Interest Expense | $124.00M |
| Net Income | $1.62B |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 4.40B |
| Shares Outstanding (Diluted) | 4.46B |
Key Highlights
- 1Net operating revenues decreased by 4% to $10.576 billion, primarily due to unfavorable foreign currency exchange rates (-4%) and structural changes.
- 2Global unit case volume grew by 2%, with Asia Pacific showing particularly strong growth at 7%.
- 3Consolidated net income attributable to shareowners decreased to $1.619 billion ($0.36/share) from $1.751 billion ($0.39/share) in the prior year.
- 4A significant charge of $226 million was recorded due to Venezuelan currency devaluation and related exchange rate revaluations.
- 5Gross profit margin improved to 61.4% from 60.8% year-over-year, driven by productivity initiatives and strategic divestitures.
- 6The company maintained a strong liquidity position with $9.131 billion in cash and cash equivalents and $6.321 billion in available lines of credit.
- 7Investments in Green Mountain Coffee Roasters (now Keurig Green Mountain) amounted to approximately $1.265 billion, classified as available-for-sale securities.