Categories AlphaGraphs, Earnings, Retail

Coca-Cola posts better-than-expected Q3 results

Beverage giant Coca-Cola Co. (KO) reported a 26% jump in earnings for the third quarter helped by a decline in costs and expenses. The top and bottom line came in above analysts’ expectations. Following this, the stock inched up over 1% in the premarket session.

Net income climbed 26% to $1.81 billion and earnings jumped 31% to $0.44 per share. Comparable EPS from continuing operations grew 14% to $0.58.

Net operating revenues fell 9% to $8.25 billion. The top line was hurt by a 13 points headwind from the refranchising of company-owned bottling operations. Organic revenue increased 6% on concentrate sales growth of 4% that benefited from the timing of shipments and price/mix growth of 2%.

Coca-Cola third quarter 2018 Earnings Infographic
Coca-Cola Q3 2018 Earnings Infographics

Unit case volume grew 2%, led by Trademark Coca-Cola. The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages. Price/mix rose 2% for the quarter led by solid performance in the core business. Concentrate sales increased 2 points ahead of unit case volume largely due to the timing of shipments within Latin America.

Sparkling soft drinks rose 2% on Trademark Coca-Cola along with strong growth in the low- and no-calorie offerings of Sprite and Fanta. Water, enhanced water and sports drinks increased 5% on strong growth of water in single-serve packaging in China and Mexico along with the premium offerings in North America.

Juice, dairy, and plant-based beverages fell 3% as challenging macroeconomic environment hurt the Middle East and North Africa as well as package downsizing in North America impacted the results. Tea and coffee declined 2% due to a decline in its local tea brand in Turkey and the impact of Nestea resulting from the dissolution of Beverage Partners Worldwide.

Coca-Cola also announced several strategic actions, including a number of acquisitions and investments, and continued to lift, shift and scale brands around the world. The company’s disciplined growth strategies and an ongoing focus on productivity led to double-digit profit growth for the quarter.

Looking ahead into the full year 2018, the company still expects organic revenues to increase at least 4% and comparable currency neutral operating income growth of at least 9%. Capital expenditures are still anticipated to be about $1.7 billion and cash from operations are predicted to be about $8 billion. Comparable EPS from continuing operations are projected to increase in the range of 8% to 10% from $1.91 in 2017.

Shares of Coca-Cola ended Monday’s regular session up 1.18% at $46.46 on the NYSE. The stock has risen over 1% in the year so far and 0.85% in the past year.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top