Summary
The Coca-Cola Company's third-quarter 2020 filing shows a decrease in net operating revenues by 9% year-over-year, largely impacted by the ongoing COVID-19 pandemic which shifted consumer demand towards at-home consumption and away from traditional away-from-home channels. This resulted in a consolidated net income attributable to shareowners of $1.737 billion, or $0.40 per diluted share, compared to $2.593 billion, or $0.60 per diluted share, in the prior year period. Despite revenue challenges, the company demonstrated effective cost management, with selling, general, and administrative expenses decreasing by 19% due to reduced marketing spend and ongoing productivity initiatives. The company maintained a strong liquidity position with $11.385 billion in cash and cash equivalents and $7.347 billion in short-term investments, indicating resilience amidst the economic downturn.
Financial Highlights
52 data points| Revenue | $8.65B |
| Cost of Revenue | $3.47B |
| Gross Profit | $5.18B |
| SG&A Expenses | $2.51B |
| Operating Income | $2.30B |
| Interest Expense | $660.00M |
| Net Income | $1.74B |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 4.30B |
| Shares Outstanding (Diluted) | 4.32B |
Key Highlights
- 1Net operating revenues decreased by 9% to $8.652 billion for the three months ended September 25, 2020, compared to $9.507 billion in the prior year, primarily due to the impact of COVID-19 on away-from-home consumption channels.
- 2Diluted earnings per share (EPS) were $0.40, a decrease from $0.60 in the comparable prior year period.
- 3Consolidated net income attributable to shareowners was $1.737 billion, down from $2.593 billion in the prior year's third quarter.
- 4Selling, general, and administrative expenses decreased by 19% to $2.511 billion, reflecting cost management efforts and reduced marketing expenditures.
- 5The company acquired the remaining 57.5% interest in fairlife, LLC for $979 million in cash, further strengthening its position in the value-added dairy category.
- 6Cash and cash equivalents and short-term investments totaled $18.732 billion as of September 25, 2020, providing substantial liquidity.
- 7The company incurred $372 million in other operating charges during the quarter, primarily related to strategic realignment initiatives and restructuring.