The Coca-Cola Co., Atlanta, reported another quarter of solid operating performance, capping off strong financial results for the year, it says. While reported net revenues declined because of refranchising and currency headwinds, the company delivered organic revenue (non-GAAP) growth within its long-term target for the sixth consecutive quarter, while also gaining value share globally, it said.
“I am pleased with our strong organic revenue and earnings growth in 2018. Our results demonstrate progress in our transformation as a consumer-centric, total beverage company and the power of a more strategically aligned system,” said James Quincey, chief executive officer of The Coca-Cola Co., in a statement. “Coca-Cola has established a strong foundation to capitalize on long-term growth opportunities and drive sustained shareowner value.”
Net revenues declined 6 percent to $7.1 billion for the quarter and declined 10 percent to $31.9 billion for the year. Fourth quarter and full year results were impacted by headwinds of 13 percent and 17 percent, respectively, from the combined impact of currency and the refranchising of company-owned bottling operations, it says.
The company continued to strengthen its sparkling soft drinks portfolio and build consumption rituals through innovation, premiumization and revenue growth management initiatives, it adds. In North America, innovation in the Diet Coke brand, along with the continued success of Coca-Cola Zero Sugar, led to an 8-point acceleration in retail value growth for the no-calorie sparkling soft drinks portfolio for the year.
The company’s increased speed and agility, coupled with the strength of its distribution system, helped launch approximately 500 products across multiple markets through the lift, shift and scale strategy while also accelerating the elimination of underperforming SKUs during the year. The company also announced several key acquisitions in 2018, including Costa Limited, which provides a platform to build a global coffee business, and a strategic partnership with BODYARMOR, one of the fastest-growing beverage trademarks in the United States. BI