Strong 2Q at Coca-Cola
In the quarter and year-to-date, the company grew global volume and value share in NARTD beverages, with share gains across most beverage categories. It continued to see growth in sparkling beverages, with worldwide brand Coca-Cola volume growth of 4% in the quarter driven by a number of global markets, including 24% in China, 17% in Russia, 7% in Mexico, 7% in France, 6% in Germany and 2% in Japan. Worldwide sparkling beverage volume grew 5% in the quarter (4% excluding new cross-licensed brands in North America), with international sparkling beverage volume growing 5%.
Worldwide still beverage volume grew 7% in the quarter, led by growth across the portfolio, including juices and juice drinks, sports drinks, ready-to-drink teas, energy drinks and water brands. Still beverage volume in the quarter grew 10% internationally and 1% in North America. Minute Maid Pulpy continues to expand globally and achieved 35% growth in the quarter. Water grew 10% in the quarter with a focus on innovative and sustainable immediate consumption packaging like our PlantBottle in the U.S. and the Eco Crush bottle for the I LOHAS brand in Japan. Global volume and value share gains realized in total nonalcoholic ready-to-drink (NARTD) beverages and across both sparkling and still beverages
- Strong worldwide volume growth of 6% in both the quarter and year-to-date, with growth across all five geographic operating groups. Excluding new cross-licensed brands, primarily Dr Pepper brands, worldwide volume was up 5% in both the quarter and year-to-date. International volume was up 6% in the quarter and year-to-date.
- North America volume was up 4% in the quarter and grew 5% year-to-date. Excluding new cross-licensed brands, North America volume was even in the quarter and grew 1% year-to-date.
- Worldwide volume growth was led by brand Coca-Cola, up 4% in the quarter and up 3% year-to-date.
- Second quarter reported EPS was $1.20, up 18%, with comparable EPS at $1.17, up 10% and ahead of our long-term growth target. Year-to-date reported EPS was $2.02, up 18%, with comparable EPS also at $2.02, up 9%.
- Second quarter reported net revenue and comparable net revenue were both $12.7 billion, up 47%, reflecting solid growth in concentrate sales, a 6% currency benefit, positive price/mix and the acquisition of Coca-Cola Enterprises' (CCE) North American operations in the fourth quarter of 2010. Year-to-date reported net revenue and comparable net revenue were both $23.3 billion, up 44%.
- Second quarter reported operating income was $3.2 billion, up 15%, with comparable operating income of $3.4 billion, up 18%, reflecting strong top-line performance, a 6% currency benefit and the acquisition of CCE's North American operations, partially offset by increased commodity costs. Year-to-date reported operating income was $5.5 billion, up 10%, with comparable operating income of $5.9 billion, up 14%, including a 4% benefit from currency.
- Coca-Cola Refreshments (CCR) integration efforts are on plan, with expected 2011 net cost synergies of $140-150 million.
- Company-wide productivity initiatives are well on track to slightly exceed the upper end of its original targeted range of $400-500 million in annualized savings by year-end 2011, the final year of the four-year program.
Muhtar Kent, chairman and CEO of The Coca-Cola Company, said, "We are pleased with our second quarter performance results. We completed the second quarter of 2011, and the sixth quarter of our 2020 Vision, by delivering results ahead of our long-term growth targets. Importantly, we are delivering these strong results at a time when global macroeconomic conditions are at best mixed. This serves to underscore how, together with our global bottling partners, we are decisively investing in the future and executing our 2020 Vision from a position of real strength.
"Even as consumers around the world continue to feel the impact of a slow economic recovery, they increasingly choose our brands to refresh themselves at a rate of over 1.7 billion servings each and every day. Our strong revenue and profit results, combined with our worldwide share gains and positive price/mix, attest to the strength of our global system. With our 2020 Vision as our roadmap, we continue to sharpen our focus on execution by getting very clear on those priority actions we need to take to deliver in the near term while also preparing for 2020 today.
"During this past quarter, we officially celebrated Coca-Cola's 125th anniversary. And while it is wonderfully rewarding to celebrate our past, we remain constructively discontent and resolutely focused on our future. Our proven track record of creating value over time is a testament to this dynamic commercial enterprise and business that has just begun to reach its potential. That is why, as we look ahead to 2020 and beyond, we remain confident in our ability to achieve our long-term targets and to deliver sustainable profitable growth and value for our shareowners."
From the July 19, 2011, Prepared Foods' Daily News.