The Coca-Cola Company (NYSE:KO) reported a 11% rise in 2Q16 earnings driven by organic revenue growth, and expanded operating margins as well as lower costs and expenses. Net income rose to $3.46Bil or $0.79 per share from $3.11Bil or $0.71 per share last year. Operating revenues slid 5% to $11.54Bil. $KO's concentrate sales growth was in line with unit case volume growth in 2Q16. Global price/mix grew 3%, reflecting continued effective pricing and packaging initiatives across key markets. The positive price/mix in 2Q16 was driven by solid underlying pricing partially offset by 1 point of geographic mix.
The company now expects full-year comparable EPS to be down 4-7% versus prior year's EPS of $2.00. $KO also sees 2016 underlying effective annual tax rate of 22.5% and net share repurchases of $2-2.5Bil. For 3Q16, $KO sees currency to be a 2 point headwind on comparable net revenues and a 2 to 3 point headwind on comparable income before taxes.
In connection with its North American refranchising initiative, $KO said that it has reached definitive agreements or signed letters of intent for 43 of the 51 cold-fill production facilities in the United States. "While the macroeconomic headwinds we're facing in these emerging and developing markets are cyclical in nature and not secular downturns, we're not expecting a material improvement in the remainder of the year given the continuing volatility in the global economy", said $KO's CEO Muhtar Kent.
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Submitted July 27, 2016 at 05:48PM by Robert-Phillips http://ift.tt/2axWhbs
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