Beverage Industry

Coca-Cola reports full-year, Q4 2012 results

February 12, 2013

The Coca-Cola Co., Atlanta, reported growth in global volume, net revenues, earnings per share, and cash from operations in its full-year and fourth-quarter 2012 results.

“We are pleased with our results we announced today,” said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co., in a statement. “In a year marked by continued uncertainty in the global economy, we delivered solid volume, revenue and profit growth, and we realized further volume and value share gains in nonalcoholic ready-to-drink (RTD) beverages. The Coca-Cola Co. has consistently delivered quality results and met or exceeded its long-term volume, revenue and profit growth targets every year since the announcement of our 2020 Vision at the end of 2009. This reflects the commitment of our entire system to invest together for a better tomorrow and to sustainably create shared value while making a positive difference in the communities we serve. Together we are delivering on our priorities and achieving success.

“As we enter 2013 in what is still an uncertain global economy, we know that it is critical to seize the opportunity to keep leading and succeeding in any environment,” Kent continued. “We must continue investing in our business so that we get even better — better at collaborating, at innovating, at listening to consumers, customers and our bottling partners, and, most importantly, at executing with precision. All of us at Coca-Cola remain diligent about our results as we manage our business for continued sustainable long-term success.”

In the North American market, volume grew 1 percent during the fourth quarter and 2 percent for the full year, cycling 1 percent growth in the prior year quarter and 1 percent organic growth in the prior year, the company says. Reported net revenues for the quarter increased 6 percent in this market, reflecting 5 percent volume growth, an even price/mix, the benefit of two additional selling days in the quarter, and a 1 percent benefit from structural changes, primarily related to the acquisition of Great Plains Coca-Cola Bottling Co., Oklahoma City, it says. For the full year, the company reported net revenues growth at 5 percent, reflecting volume growth of 2 percent, positive price/mix of 2 percent, and a 1 percent benefit from structural changes, primarily related to the Great Plains Coca-Cola Bottling Co. acquisition.

More specifically, during the quarter and for the full year, North America gained volume and value share in non-alcohol RTD beverages, sparkling beverages and still beverages in all categories except packaged water, as Dasani maintains a significant price premium over private label competition, the company says. In terms of volume, Coca-Cola Zero grew in the mid single digits during the fourth quarter and in the high single digits for the full year; Fanta was up 10 percent in the quarter, led by strong Halloween programming; and Seagram’s grew 9 percent during the quarter, driven by the continued expansion of Seagram’s Sparkling Seltzer Water and Diet Seagram’s. Still beverage volume grew 8 percent in the quarter, led by Powerade’s 11 percent growth as well as continued strong growth in its RTD tea portfolio. Powerade also led the broader North American sports drink category in both absolute volume and value growth in 2012, building on its 2012 Olympic Games activation and its Power Through campaign. Juice and juice drink brands grew 1 percent during the quarter and 2 percent for the full year, with the Simply trademark up 12 percent in the quarter, driven by the continued expansion of Simply Cranberry Cocktail and Simply Lemonade with Mango.

The company also reported that it has reorganized its Coca-Cola Refreshments business in the United States to align its sales and operating functions around three geographies — East, Central and West — to ensure greater operating effectiveness and productivity to meet its 2020 Vision.

For the full report, visit www.coca-colacompany.com.