On Friday, Coca-Cola added 0.45% as it moved to close at $44.98 per share, helped along by the release of better-than-expected results. Revenues for the period came in at $7.51b, beating estimates of $7.37b. However, it must be noted that net revenues declined by 20% during the quarter, with the slump mainly due to headwinds from its efforts to refranchise its bottling operations. Organic sales, however, which excludes the aforementioned efforts, increased by 6%. Overall, adjusted earnings per share for the quarter stood at 39 cents, marginally higher than forecasts of 38 cents. This excluded a $3.6b one-time charge relating to changes in the US tax code.
Coca-Cola released better-than-expected quarterly results on Wednesday. During the third quarter, the group saw revenues come in at $9.08bn, 15% lower than recorded a year ago but higher than estimates of a decline to $8.72bn. This drop was mainly due to its refranchising efforts, but was partly offset by a 10% increase in sales in its Latin American region. Overall, net income grew to $1.45bn, sharply higher than the $1.05bn reported previously. This uptick was primarily due to its cost-cutting program, which included a 20% reduction in its workforce. On an adjusted basis, earnings stood at 50 cents per share, 2% higher than that reported in 2016 and slightly higher than forecasts of 49 cents per share.
On Tuesday, Coca-Cola released a mixed set of results for the first quarter. Revenues for the period came in at $9.118bn, beating estimates of $8.874bn, but net revenues declined by 11% over the quarter. The group also recorded a 20% decline in quarterly profit, mainly due to higher costs related to the refranchising efforts of Coca-Cola’s North American bottling operations. As a result, adjusted earnings per share dropped to 43 cents, slightly lower than estimates of 44 cents. Despite the tough quarter, Coca-Cola remains optimistic for the rest of the year, with the group now expecting full-year earnings to only decline by between 1% and 3%, which would be slightly better than previous estimates of a drop of between 1% and 4%.
Coca-Cola released better-than-expected quarterly results yesterday, although future guidance fell short of estimates. Revenues for the period came in at $9.41bn, down from the $10.01bn recorded a year ago, but higher than expectations of a decline to $9.13bn. Furthermore, adjusted earnings dropped to 37 cents a share in the fourth quarter of 2016, in-line with expectations, but slightly lower than the 38 cents per share reported in 2015. Looking forward, the group currently expects earnings to decline by between 1% and 4% for the 2017 fiscal year. This is much lower than the expected increase to $1.97 per share from $1.91 per share reported in 2016.
On Monday, Coca-Cola announced that the group would exercise its right to buy Anheuser-Busch InBev’s stake in Africa’s biggest Coke drinks bottler, following its takeover of SABMiller. When Coca-Cola Beverages Africa (CCBA) was formed in 2014, along with SABMiller and Coca-Cola Sabco, Coca-Cola retained the right to buy SABMiller’s stake should the group undergo a change in ownership. As it stands, Coca-Cola owns 11.3% of CCBA, while SABMiller owns 57% and Coca-Cola Sabco the rest. Coca-Cola is set to negotiate the terms of the deal with AB InBev over the next few months and continue talks with potential partners to refranchise CCBA.
Coca-Cola ended 4.79% lower yesterday, with sales falling for the fourth straight quarter due to the stronger dollar. Sales in Europe declined by 1%, while Latin American and Asia Pacific saw sales fall by 12.2% and 4% respectively. Overall, Coca-Cola reported a 4% drop in net operating revenue to $10.28bn, while organic revenue, which excludes the effect of currency translations, increased by 2%. On the upside, Coca-Cola reported earnings of 45 cents per share, marginally higher than expectations of 44 cents per share. Earlier this week, PepsiCo also reported a drop in sales, but like Coca-Cola, saw earnings come in higher-than-expected.