Summary
The Coca-Cola Company's Q1 2016 filing indicates a slight decrease in net operating revenues to $10.28 billion from $10.71 billion in the prior year period, primarily driven by unfavorable foreign currency exchange rates which reduced revenues by 5%. Despite the revenue dip, the company managed operating income well, with a reported figure of $2.14 billion, down from $2.30 billion in Q1 2015. Diluted earnings per share stood at $0.34, a minor decrease from $0.35 in the prior year. The company demonstrated strong liquidity with an increase in cash and cash equivalents to $8.75 billion from $7.31 billion at year-end 2015, bolstered by effective cash flow management and strategic investment disposals, most notably the sale of its Keurig investment. Key operational focuses for the quarter included ongoing productivity and reinvestment programs, as well as strategic refranchising of North American bottling territories, which contributed to a significant $369 million noncash loss in "Other Income (Loss) - Net" for Q1 2016 due to intangible asset derecognition. The company also continues to navigate the complexities of operating in hyperinflationary economies, particularly Venezuela, which resulted in several charges in the prior year period and ongoing currency conversion challenges. Despite these factors and the strong U.S. dollar, Coca-Cola remains focused on brand strengthening and reinvestment for long-term growth.
Financial Highlights
55 data points| Revenue | $10.28B |
| Cost of Revenue | $4.07B |
| Gross Profit | $6.21B |
| SG&A Expenses | $3.76B |
| Operating Income | $2.14B |
| Interest Expense | $141.00M |
| Net Income | $1.48B |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 4.33B |
| Shares Outstanding (Diluted) | 4.38B |
Key Highlights
- 1Net operating revenues decreased by 4.0% to $10.28 billion, largely impacted by a 5% unfavorable foreign currency exchange rate impact.
- 2Diluted earnings per share were $0.34, a slight decrease from $0.35 in the prior year quarter.
- 3Operating income decreased to $2.14 billion from $2.30 billion year-over-year, primarily due to revenue decline and increased restructuring charges.
- 4Cash and cash equivalents increased significantly by 20% to $8.75 billion, indicating strong liquidity management.
- 5The company completed the disposal of its Keurig Green Mountain investment, generating $2.38 billion in proceeds and a $18 million gain.
- 6Ongoing refranchising of North American bottling territories resulted in a $369 million noncash loss in "Other Income (Loss) - Net" due to intangible asset derecognition.
- 7The company continues to address challenges in hyperinflationary economies, specifically Venezuela, which impacted prior year results and remains a monitoring point.