Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Q2 2015 Earnings Presentation
16 slides from Coca-cola Company (the)'s earnings presentation, Jul 22, 2015
Slide 1: Second Quarter 2015 Earnings Call
Second Quarter 2015 Earnings Call July 22, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expres
Slide 3: Topics
Topics Q2 2015 Review Strategic Actions and Progress Financial Review Summary 3 3
Slide 4: Our second quarter results are broadly in line with our expectations
Our second quarter results are broadly in line with our expectations Winning Metrics: Q2 vs PY Value Share - Sparkling - Still - NARTD Growth/Profit Metrics: Q2 vs PY YTD vs PY Unit Cases (calculated on average daily sales basis) 2% 1% Organic Revenue* 4% 6% - Volume (Concentrate Sales / Reported Vo
Slide 5: We are making progress against our five strategic actions
We are making progress against our five strategic actions 1 Drive revenue and profit growth 2 Make disciplined brand and growth investments 3 Aggressively expand our productivity program 4 Streamline and simplify our operating model 5 Refocus on our core business model 5
Slide 6: Driving revenue and profit growth
Driving revenue and profit growth North Focus on revenue is delivering value share gains ahead of volume share gains America Value Share Volume Share +5% organic revenue NARTD Sparkling +4%price/mix Still Sparkling portfolio • Sparkling revenue growth driven by 4% price/mix +8% comparable income • R
Slide 7: Disciplined brand and growth investments are driving results
Disciplined brand and growth investments are driving results China Strong performance of Argentina Gaining value share ahead North Driving strong sparkling brand Coca-Cola of volume share America price realization +11% Brand Coca-Cola +4% Sparkling Volume Growth Value Volume Price/Mix Share Share 7
Slide 8: Productivity efforts and operating model are on track
Productivity efforts and operating model are on track YTD 2015 • On track across all spend areas to hit key milestones this year and deliver $3 billion in annualized savings by 2019 • Consolidated three distribution centers and closed one plant in North America • Began the process of installing in-l
Slide 9: North America refranchising proceeding as planned
North America refranchising proceeding as planned Actions Map • Transitioned over 5% of U.S. bottle/can volume in Q2 • Signed Letters of Intent for close to another 10% of U.S. bottle/can volume in Q2 • In total, territories transitioned to- date or covered by agreements represent ~25% of total U.S.
Slide 10: We are maintaining our full-year underlying currency neutral growth expectations
We are maintaining our full-year underlying currency neutral growth expectations • We are broadly where we expected to be • But there is still much work ahead of us • We are confident in our strategies and execution • However, global consumer environment remains volatile 10
Slide 11: Our second quarter results are broadly in line with our expectations
Our second quarter results are broadly in line with our expectations • Q2 EPS considerations – 4% organic revenue growth driven by 3% growth in concentrate shipments and 1% price/mix – Positive pricing and product mix across many markets, partially offset by negative geographic mix – Comparable gros
Slide 12: Full Year 2015 Outlook
Full Year 2015 Outlook Structural Items • Now expected to be a 1% headwind on both net revenues and income before taxes Currency • Now expected to be ~6% headwind on net revenues, ~11% headwind on operating income and 7 to 8% headwind on income before taxes Net Share • Now expected to be $2.0 to $2.
Slide 13: Third Quarter 2015 Considerations
Third Quarter 2015 Considerations Organic Topline • July 4th holiday sales benefited Q2 this year as compared to Q3 last year Structural • Slight headwind on net revenues and 1 to 2% headwind on income Items before taxes Currency • ~7% headwind on net revenues, ~13% headwind on operating income and
Slide 14: Financial summary
Financial summary • We are seeing initial progress based on our plan to reinvigorate topline growth • We continue to operate in a challenging macro environment • Therefore, while currency headwinds are increasing, we see no change to our full year comparable currency neutral growth expectations 14
Slide 15: Q&A
Q&A
Slide 16: Summary
Summary • We are broadly where we expected to be halfway through our transition year • While there is more work to do, we remain confident that we have the right plans in place to restore momentum • The long-term dynamics of our industry remain promising • The Coca-Cola Company is best positioned to
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