Today Coca-Cola (NYSE: KO) reported worldwide volume growth of 2% for the full year and 1% in the fourth quarter 2013. The company also reported global value share gains in nonalcoholic ready-to-drink beverages with volume and value share gains in core sparkling and still beverages for the full year.
Chairman and CEO Muhtar Kent said, “2013 was marked by ongoing global macroeconomic challenges in many markets around the world. And while our business was not immune to these pressures leading to moderated global volume growth, we delivered sound financial results in line with our long-term profit targets and gained global value share in total nonalcoholic ready-to-drink beverages as well as global volume and value share in core sparkling and still beverages for the year.”
The Company reported solid volume growth for the full year in certain developed markets, including Germany (+2%), the Northwest Europe and Nordics business unit (+1%) and Japan (+1%).
Worldwide sparkling beverage volume was up 1% for the year, led by brand Coca-Cola, and was even for the fourth quarter. Growth for the year was broad based across our sparkling portfolio, including Fanta and Sprite, enabling us to capture global core sparkling volume share for the 8th consecutive year.
full press release, including more facts and figures about our third quarter
results, can be found here.
Check back later today for more updates from our quarterly call with investors. In the meantime, you can listen live beginning at 9:30 a.m. ET.
Following the release of our earnings this morning, our Chairman and CEO Muhtar Kent and CFO Gary Fayard conducted a call with financial analysts. Below are some highlights of what was said. If you missed listening to the webcast discussing our full-year and fourth quarter 2013 earnings, you can listen to a replay at the link below. We’ll also have a transcript of the call available at the same link shortly.
Muhtar Kent on overall results:
“With 2013 behind us, I am now looking forward to joining forces with our global system associates as we work to restore momentum to our business in 2014. 2013 was clearly marked by ongoing and persistent macroeconomic challenges and our business was not immune to these pressures. Nevertheless, we delivered sound financial results and we grew global value share in nonalcoholic ready-to-drink beverages for a 26th consecutive quarter.
Our worldwide volume grew 1% in the fourth quarter and 2% for the full year.
We delivered full year comparable, currency neutral operating income growth of 6% after excluding the impact of structural changes, off of a comparable, currency neutral, ex-structural revenue growth of 3% for the full year. And we delivered full year comparable, currency neutral EPS growth of 8%, in line with our long-term growth targets. This performance underscores our ability to generate sound financial results even in a challenging year.
Our sparkling brands grew 1% for the full year, cycling 3 with brand Coca-Cola adding nearly 100 million cases. In fact, all of our billion dollar sparkling brands except for Diet Coke / Coca-Cola Light grew in 2013 contributing more than 140 million incremental cases for the year. As of the end of year 2013 we gained core sparkling value share for 17 consecutive quarters.
For the full year our portfolio of still beverage brands contributed over 300 million incremental cases, or 5% growth, while cycling 10% growth in the prior year. Importantly, we gained volume share and value share for the year.”
Gary Fayard, Chief Financial Officer on productivity initiatives:
“Let me take a moment to update everyone on our productivity initiatives before I move to our outlook for 2014.
- First, let me start by saying we have made significant progress on our previously announced productivity and reinvestment program. In fact, I am happy to report that by the end of 2013 we have substantially accomplished the objectives of the program and captured the savings associated with those objectives.
- Second, as Muhtar mentioned earlier, we are expanding our previously announced productivity and reinvestment program to drive an incremental $1 billion in productivity by 2016 that will be redirected primarily into increased media investments.
- Our incremental productivity goal consists of two relatively equal components: First, expanded savings through global supply chain optimization as well as data and information technology system standardization, which will be reinvested in global brand-building initiatives with an emphasis on increased media spending, and also, we will be increasing the effectiveness of our marketing investments by transforming our marketing and commercial model to redeploy resources into more consumer-facing marketing investments to accelerate growth.”
Muhtar Kent on key strategic priorities:
“We aligned on five strategic priorities to restore momentum and to keep us on a path to achieve our 2020 Vision. These priorities focus on the growth drivers for our system – sparkling beverages, still beverages and global system execution – and on securing and strengthening the financial and human capital necessary to deliver long-term sustainable growth.
Our five strategic system priorities to restore momentum are:
#1: Accelerating sparkling growth, led by Coca-Cola
#2: Strategically expanding our profitable still portfolio
#3: Increasing media investments by maximizing productivity
#4: Wining at the point of sale by unlocking the power of the system; and
#5: Investing in our next generation of leaders”Hear the entire investors webcast by clicking here.