US: Coke earnings up but warns of full year earnings
The Coca-Cola Company today reported that third quarter earnings per share were up to $0.47, compared to $0.45 last year. However CEO Douglas Daft warned that full-year earnings may be $0.01 - $0.02 per share below the current consensus expectations of $1.78.
The period's EPS included a $0.01 per share non-recurring charge from Latin American equity investees and the negative impact of $0.01 per share from foreign currencies.
The company generated net cash from operating activities of $1.2 billion in the quarter and $3.4 billion for first nine months of the year.
Worldwide unit case volume increased more than 5% in the quarter and 5% for the first nine months, reflecting 9% volume growth in North America and 4% internationally in the quarter. Unit case volume benefited from the recent strategic acquisitions and license agreements on brands such as Evian, Danone waters, Seagram's Mixers, and Risco.
Daft said: "We continued to build on our progress in the first half of the year to generate year-to-date carbonated soft drinks growth of 2% and non-carbonated beverages growth of 27%, while continuing to enhance system profitability. While growth in North America was very strong, our worldwide results were below our internal projections due to extremely poor weather conditions in parts of Europe and Asia. Further, we have not yet seen the improvements in macroeconomic conditions that we anticipated when we set our earnings objectives at the beginning of 2002."
He continued; "However, as economic conditions are not expected to improve in the fourth quarter, we may not recoup the earnings impact of factors beyond our control that affected our business in the third quarter. As a result, it is possible that the Company's full-year earnings may be $0.01 - $0.02 per share below the current consensus expectations of $1.78.
"Even as economic conditions remain challenging, we are confident that our growth rates will continue to exceed the worldwide industry trends in all major beverage categories," concluded Daft.
While the UK bottled water market has grown over recent years, low per capita consumption in comparison with European average gives water marketers much reason for optimism. Ben Cooper reviews a repor...
Coca-Cola announced last week that it was taking over full control of its US water joint venture, CCDA Waters, buying out its partner, Danone. However, speculation over the poor performance of the CCD...
Dairy, functional and premium juices were the winners, water continued to grow, whilst carbonates and squashes lagged behind in the 2004 UK soft drinks race, according to the recently published Britvi...
PepsiCo has denied press reports that it is looking to acquire Groupe Danone....
In a tough market for the home and office delivery segment of the US water market, Danone may have to cut the value of its subsidiary DS Waters, the UK's Financial Times reported today....
Groupe Danone is pulling out of the brewing industry....
Danone has completed another share buyback transaction....
Danone and Yakult have announced a joint venture to sell probiotic products in India. The move marks the first entrance by either company into the Indian market, in which they are aiming to become lea...
- Why Scotch must drop the 'malts good, blends bad'
- Pernod's mood darkens over India - Analysis
- Heineken Q1 2017 by region - results data
- Remy Cointreau Fiscal-2017 sales - results data
- Soft drinks is losing the recycling game
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- TWE's Beringer Main & Vine Dry Rosé - NPD
- Edrington shifts innovation to US in shake-up
- Pernod Ricard posts solid YTD sales jump - results
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Emerging Drinks Industry Trends