The Coca-Cola Co’s Q1 2016 results – Preview

On Wednesday, the Coca-Cola Co will release its results for the first quarter of 2016. Here, just-drinks takes a closer look at the company’s performance in the three months to the end of March:

• In January, Coca-Cola repositioned the marketing strategy for its namesake CSD range, bringing together the global positioning of Coca-Cola, Coca-Cola Light/Diet Coca-Cola, Coca-Cola Zero, and Coca-Cola Life. The move prompted just-drinks to ask if the whole portfolio would eventually turn red
• During the announcement, COO James Quincey said the use of plant-based sweetener Stevia, which is a key component in Coke Life, needed to be improved
• A week later, the UK division of Coca-Cola announced a new recipe for Coca-Cola Life, featuring reduced sugar and increased Stevia
• On 1 February, the group announced plans to buy a minority stake in Nigerian dairy and soft drinks business Chi. The move caused commentators to speculate on Coca-Cola’s Nigerian ambitions
• Later in the month, the company’s South Pacific unit launched the Fuze iced tea brand in Australia
• At the same time, Coca-Cola announced plans to re-franchise 100% of its North America bottling territories by the end of 2017, including all cold-fill production facilities. In the following days, the company’s CEO Muthar Kent said the bottling system in China had evolved to the point where re-franchising is the “next logical step”
• At the end of February, Coca-Cola hinted at an appeal to Europe’s highest court after the EU denied a trademark request for a new Coke bottle
• In March, the company said it reduced CEO Kent’s pay by 42% in 2015, in what could have been considered a backdown over investor anger at excessive salaries
• At the end of the quarter, the company announced plans to put lyrics from well-known songs on US cans and bottles, as it looked to build on the success of its Share-a-Coke campaign

Full Year 2015 highlights:

• Net profits rose by 3% to US$7.37bn
• Net sales in 12 months of 2015 dipped by 4% to $44.29bn
• Operating profits fell by 10% to $8.73bn
• FY volumes were up by 2%
• Q4 net profits increased on one-offs, by 60% to $1.24bn
• Net sales in three months to end of December slid by 8% to $10bn
• Operating profits increased by 5% to $1.52bn
• Volumes in fourth quarter rose by 3%

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