Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Q1 2016 Earnings Presentation
20 slides from Coca-cola Company (the)'s earnings presentation, Apr 20, 2016
Slide 1: First Quarter 2016 Earnings Call
First Quarter 2016 Earnings Call April 20, 2016
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: Agenda
Agenda Highlights Operational Review Financial Review Q&A
Slide 4: Transforming The Coca-Cola Company
Transforming The Coca-Cola Company Value Share Organic Margin Revenue Expansion Challenging macro environment Remain committed to our full year targets 4
Slide 5: Enhancing Our Portfolio
Enhancing Our Portfolio “One Brand” Strategy Still Beverage Acquisitions Shaping Choice and Responding to Evolving Consumer Preferences 5
Slide 6: Accelerating the Pace and Scale of Our Refranchising Plans
Accelerating the Pace and Scale of Our Refranchising Plans North America System Today By the End of 2017 ~2/3 of U.S. territories acquired from CCE under agreement or transferred 100% Refranchised 6
Slide 7: Clear Path to Transform The Company
Clear Path to Transform The Company Stronger, more efficient, and more focused on core strengths Implementing disciplined revenue growth management strategies Building new growth opportunities Bottling system getting stronger and more closely aligned Transforming our business to deliver sustainable
Slide 8: Operational Review
Operational Review
Slide 9: 1st Quarter Performance
1st Quarter Performance Outperforming the industry in a challenging operating environment Value Share Unit Case Organic Income Before Volume Growth Revenue* Taxes*** NARTD Sparkling +2% +2% +1% Volume** +1% Price/Mix +9% Still *Organic revenue is a non-GAAP financial measure ** Concentrate sales / r
Slide 10: Markets Where Our Strategies Are Working
Markets Where Our Strategies Are Working North America Mexico • +2% organic revenue growth • +5% unit case volume growth • +3% price/mix, +3% sparkling • Growth across all major price/mix categories • Continued to grow value share • New brand investments Japan India • Value share outperformed • Stro
Slide 11: Markets Where We Are Taking Action
Markets Where We Are Taking Action Europe Africa • Spain +3% Unit Case Volume • South Africa +7% Unit Case Volume • Germany +1% Unit Case Volume • Nigeria +13% Unit Case Volume • CSE BU +2% Unit Case Volume • Diversifying Our Brand Portfolio • Coca-Cola European Partners • Coca-Cola Beverages Africa
Slide 12: Markets Where We Face Macro Headwinds
Markets Where We Face Macro Headwinds China Brazil • Economic slowdown impacting • Maintain packages at key industry affordable price points • Focused on both affordability • Gained volume share and premiumization • Captured value and volume share gains Russia • Gained value share • Good marketing a
Slide 13: Productivity Is On Track
Productivity Is On Track Plan to deliver more than $600 million in productivity savings this year Building a culture that is focused on getting better everyday Transforming our business to deliver sustainable shareowner value 13
Slide 14: Financial Review
Financial Review
Slide 15: Financial Highlights
Financial Highlights Key Metrics Results • +2% organic revenue growth, impacted by one less day Top Line • Consolidated price/mix +1%, impacted by segment mix. Core price/mix +2% • Underlying gross margin* expansion driven by pricing, a benign cost environment, productivity, and segment mix Gross Ma
Slide 16: Financial Highlights
Financial Highlights Key Metrics Results • $1.1 billion in cash from operations (excluding $0.5 billion pension contribution) Cash Flow • Remainder of year, expect cash flow growth rate to be more in line with earnings growth rate • Increased annual dividend by 6% to $1.40 per share Dividend • 54th
Slide 17: Full Year 2016 Outlook
Full Year 2016 Outlook Top Line • 4 to 5% organic revenue growth • 4 to 5% net headwind from acquisitions, divestitures & structural items • 2 to 3% currency headwind Profit* • 6 to 8% income before tax growth • 3 to 4% structural headwind • 8 to 9% currency headwind EPS** • 4 to 6% growth • 8 to 9%
Slide 18: Q2 2016 Considerations
Q2 2016 Considerations Currency • 2-3 point headwind on net revenues • 6 point headwind on operating income • 11 point headwind on income before taxes Acquisitions, • 2-3 point headwind on net revenues Divestitures & • 3 point headwind on income before taxes Structural Items 18 NOTE: All guidance ab
Slide 19: Summary
Summary Working diligently to deliver our 2016 commitments Continued focus on core capabilities Returning to lower risk and higher return business Even greater confidence to achieve our long-term growth targets 19
Slide 20: Q&A
Q&A
The Coca-Cola Company — Q1 2016 Earnings Presentation on 6ix