The first quarter of 2016 was a busy one for Coca-Cola. Despite challenging macroeconomic conditions in many parts of the world, the company introduced a new global marketing strategy, acquired new brands and continued its global bottler refranchising and segmented revenue growth plans in the first three months of the year.
“We have defined a clear path to transform the company,” Chairman and CEO Muhtar Kent told analysts during a conference call to review the company’s Q1 results. “The Coca-Cola Company is becoming stronger, more efficient and more focused on our core strengths of marketing and brand building, customer value creation, and leading our franchise bottling system.”
Here are five key takeaways from Coke’s Q1 results:
The company remains on track to deliver $600+ million in productivity savings in 2016, which will fuel brand and growth investments while covering cost inflation and driving margin expansion. Structurally adjusted comparable currency neutral income before tax grew 9% in the first quarter, with underlying margin expansion reflecting Coke’s focus on productivity.
“With the challenges around the world, we will focus on what we can control in order to deliver solid revenue growth and strong underlying operating margin expansion through the effective management of our portfolio, price/mix and productivity efforts,” President and COO James Quincey said.
Note: This article includes certain "non-GAAP financial measures" as defined under U.S. federal securities laws. Refer to our first quarter 2016 earnings release issued on April 20, 2016, available at www.coca-colacompany.com (in the “Investors” section), for full financial results and a reconciliation of non-GAAP financial measures.
Forward-Looking Statements: This article contains statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company’s historical experience and our present expectations or projections. These risks are discussed in our Company’s filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2015, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements.