Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to $9.5 billion in Q3

Must Read

South African Insurance Group Takes Full Ownership of FBN Insurance in Nigeria

South African Insurance group Sanlam becomes the only shareholder in the Nigerian life insurance company FBN Insurance and its...

REGIONAL ROAD: Lagos Govt Revokes Titles of Lekki Land Encroaching Right-of-Way

…Elegushi Royal House loses part of family land to road construction Sequel to the order by the Lagos State Governor,...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...
Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3

The Coca-Cola Company continued to execute on its key strategies in the third quarter, with strong revenue growth and value share gains globally. Reported net revenues grew 8% and organic revenues (non-GAAP) grew 5%, driven by innovation, revenue growth management and improving execution. The company’s performance year-to-date has led to an update in full-year guidance.

Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3
CEO James Quincey

“Our performance gives us confidence that our strategies are taking hold with our consumers, customers and system,” said James Quincey, chairman and CEO of The Coca-Cola Company. “We are positioning the company to create a better-shared future for all of our stakeholders by delivering on our vision and growing sustainably.”

Highlights

Quarterly Performance

  • Revenues: Net revenues grew 8% to $9.5 billion. Organic revenues (non-GAAP) grew 5%. Revenue growth was driven by price/mix growth of 6%, partially offset by a 2% decline in concentrate sales.
  • Margin: Operating margin, which included items impacting comparability, was 26.3% versus 29.8% in the prior year. Comparable operating margin (non-GAAP) was 28.1% versus 30.7% in the prior year. Margins were unfavourably impacted by a 260 basis point headwind from currency and net acquisitions.
  • Earnings per share: EPS grew by 37% to $0.60. Comparable EPS (non-GAAP) declined 2% to $0.56. Comparable EPS performance included the impact of a 6-point currency headwind.
  • Market share: The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages.
  • Cash flow: Year-to-date cash from operations was $7.8 billion, up 37% largely due to strong underlying growth, working capital initiatives and the timing of tax payments. Year-to-date free cash flow (non-GAAP) was $6.6 billion, up 41%.

Company Updates

  • Executing the revenue growth algorithm: The company continues to capitalize on opportunities for growth through expanded revenue growth management capabilities and improved execution. Key initiatives include increasing the availability and distribution of priority SKUs. In Brazil, for example, expansion of priority package offerings at key price points, along with placing more than 100,000 incremental coolers in the marketplace, has led to double-digit transaction growth of immediate consumption priority packages year-to-date. Globally, growth in immediate consumption packages outpaced future consumption by 6 points during the quarter.
  • Expanding headroom for growth in sparkling beverages: Globally, trademark Coca-Cola has grown retail value 6% year-to-date through an accelerated pace of innovation and optimizing price/pack architecture in the marketplace. The largest contributor to retail value growth was the flagship U.S. market, driven by continued double-digit volume growth in Coca-Cola Zero Sugar, in addition to strong growth in smaller packages, led by double-digit growth in 7.5-oz. mini cans. Internationally, a scaled launch of Coca-Cola Plus Coffee is more than 20 markets with a diligent consumer focus, consistent messaging and an integrated execution plan has driven strong performance year-to-date. Accelerated revenue growth for core sparkling soft drink brands continues to fuel and enable new innovations and investments across the expanding total beverage portfolio.
  • Disciplined portfolio growth of premium brands: During the year, the company leveraged the leader, challenger, explorer framework to successfully grow SmartWater in India, where it has become the second-largest premium water brand in the market since its initial launch in 2018. In the explorer and challenger phase, the company leveraged local celebrity endorsements and digital marketing to drive brand edge while expanding distribution in select channels as a premium offering. India is now the fourth-largest market globally for the SmartWater brand, with a target to be in 90,000 outlets by the end of 2019.
  • Expanding innovation through Coca-Cola Energy: The company recently announced plans to bring new fans into the energy drink category next year with the U.S. launch of Coca-Cola Energy. Coca-Cola Energy and Coca-Cola Energy Cherry – a flavour available exclusively in the United States – and their zero-calorie counterparts will be available nationwide in 12-oz. sleek cans starting in January 2020. The rollout supports ongoing efforts to deliver more beverage options that meet changing preferences, lifestyles and tastes. It’s also an example of the company’s commitment to move quickly, bring more drinks to the shelf, and “lift and shift” innovations around the world. Coca-Cola Energy debuted earlier this year in Spain and Hungary and is currently available in more than 25 countries.
  • Growing sustainably through package innovation: During the quarter, the company made solid progress on its World Without Waste goals. In the United States, the company announced the goal of removing the equivalent of at least 1 billion virgin PET plastic bottles from its supply chain over the next five years. Dasani, America’s leading mainstream bottled water brand, will roll out a next-generation lineup of recyclable, reusable and package-free options – anchored by the first-ever HybridBottle™, which is made with a mix of up to 50% plant-based, renewable material and recycled PET. The company also announced the expansion of up to 100 Dasani PureFill™ water dispensers leveraging Coca-Cola Freestyle™ technology in late 2019. Globally, the company now has seven markets where its local water brand is packaged in 100% recycled PET. The company also continues to lightweight it’s packaging to reduce the amount of virgin PET plastic sourced by the Coca-Cola system.
Read Also:  Coca-Cola products manufactured in Nigeria safe – Health ministry
Read Also:  Twitter to Introduce 'Hide Replies' Feature in June

Download the Coca-Cola Company Q3 Earnings Report (PDF)

- Advertisement -
Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3

Latest News

Average of 15 people died daily in 2019 road accidents across Nigeria – NBS

No fewer than 5,483 people died in road accidents in Nigeria in 2019, according to the National Bureau of...

Lockdown Fatigue and Anxiety: A Potent Mix for Social Unrest (LBS Executive Breakfast Session – June 2020)

"When will this economic paralysis come to an end? I am in pain" "I will rather die from Coronavirus than die of hunger" seems to...

Abbey Mortgage Bank Plc Announces the Retirement and Appointment of Acting Managing Director/CEo

The Board of Directors of ABBEY MORTGAGE BANK PLC. hereby announces that MRS. ROSE ADA OKWECHIME has retired from the Bank with effect from...

African Alliance Insurance Plc Announces Approval for Extension of Filing Financial Statements for FY 2020 & Q1 2020

African Alliance Insurance Plc wishes to notify its esteemed shareholders and other stakeholders that the Company has obtained the approval of The Nigerian Stock...

The Most Profitable Sports for Betting In Nigeria

Learn about which sports can yield more returns when betting with Nigerian online bookmakers. Make every bet count. The Most Profitable Sports...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3Coke Zero Sugar and Smaller Cans Drive Coca-Cola Revenue to .5 billion in Q3