ATLANTA, April 20, 2016 – The Coca-Cola Company today reported first quarter 2016 operating results. “We continue to transform The Coca-Cola Company into a company that is focused on our core value creation model of building strong brands, enhancing customer value and leading our franchise system,” said Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company. “Amidst a challenging global macro environment, the continued focus on our five strategic initiatives enabled us to gain global value share in the first quarter and deliver positive top-line growth and strong underlying margin expansion. Our operating results are driven by our commitment to sustainable growth, and we are confident that we have the right strategies in place to achieve our full-year outlook and drive long-term value for our system and shareowners.”
- Reported net revenue declined 4% and organic revenue grew 2% in the quarter, impacted by one less day in our reporting calendar.
- Reported EPS was $0.34 and comparable EPS was $0.45.
- Global volume grew 2%.
- Global price/mix was a positive 1%, as solid underlying pricing was partially offset by segment mix.
- Comparable currency neutral operating margin expanded.
- Gained global value share in nonalcoholic ready-to-drink beverages.
- Full-year comparable currency neutral earnings outlook remains unchanged
North America
Organic revenue growth was driven by 3 points of positive price/mix, partially offset by lower concentrate sales which were impacted by one less day in the quarter. After adjusting for the one less day in the quarter and the impact of acquired volume, concentrate sales growth and unit case sales growth were in line.
Comparable currency neutral income before taxes growth outpaced organic revenue growth in the quarter primarily due to favorable operating leverage resulting from the impact of our productivity initiatives and timing of expenses, partially offset by a net negative 2 point structural impact from refranchised territories and the brand transfer agreement associated with the closing of the transaction with Monster in 2015.
We gained value share in total NARTD beverages for the 24th consecutive quarter driven by the continued increase in the quantity and quality of our marketing investments along with our disciplined approach to pricing and packaging strategies. Sparkling beverage volume was even in the quarter. Growth in Sprite, Fanta and energy drinks was offset by a decline in Trademark Coca-Cola. Still beverage volume growth in the quarter was driven by juice and juice drinks, sports drinks, ready-to-drink tea and packaged water. Full report.
