Summary
The Coca-Cola Company (KO) reported its third-quarter 2019 financial results, showcasing a robust increase in net operating revenues, up 8% year-over-year to $9.5 billion. This growth was primarily driven by a favorable price, product, and geographic mix, alongside strategic acquisitions and divestitures, which collectively contributed positively to the top line, despite a slight headwind from foreign currency fluctuations. Net income attributable to shareowners saw a substantial rise, reaching $2.59 billion, or $0.60 per diluted share, compared to $1.88 billion, or $0.44 per diluted share, in the prior year's quarter. This significant improvement in profitability was bolstered by substantial gains, including a notable $739 million from the sale of a New York City building, and a more favorable tax rate compared to the prior year. The company also continued its strategic investments, notably acquiring Costa Limited, which is expected to enhance its presence in the hot beverage market. Despite some impairment charges related to equity method investments, the overall financial health remains strong, supported by solid operating cash flows and prudent financial management.
Financial Highlights
53 data points| Revenue | $9.51B |
| Cost of Revenue | $3.77B |
| Gross Profit | $5.74B |
| SG&A Expenses | $3.12B |
| Operating Income | $2.50B |
| Interest Expense | $230.00M |
| Net Income | $2.59B |
| EPS (Basic) | $0.61 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 4.28B |
| Shares Outstanding (Diluted) | 4.32B |
Key Highlights
- 1Net operating revenues increased by 8% to $9.5 billion for the third quarter, driven by price/mix and acquisitions/divestitures.
- 2Consolidated Net Income attributable to shareowners surged to $2.59 billion, up from $1.88 billion in the prior year's quarter.
- 3Diluted Earnings Per Share (EPS) rose to $0.60 from $0.44 year-over-year.
- 4The company completed the acquisition of Costa Limited in January 2019, integrating it into the new Global Ventures operating segment.
- 5Strategic divestitures, such as the sale of a New York City building, contributed a significant $739 million gain to 'Other Income (Loss) — Net'.
- 6Operating income decreased slightly by 4% to $2.5 billion, largely due to unfavorable foreign currency impacts and timing of concentrate shipments.
- 7Cash provided by operating activities for the nine months ended September 27, 2019, increased significantly to $7.77 billion, up 37% from the prior year.