A lot of coca-cola bottles in the shining sun

The Coca‑Cola Company Reports Full-Year and Fourth Quarter 2011 Results


Strong full-year global volume growth of 5%, driven by international volume growth of 5% and North America organic volume growth of 1%

Quarterly volume and revenue growth across all five geographic operating groups with broad-based global volume and value share gains

Full-year reported EPS of $3.69 and Q4 reported EPS of $0.72

Full-year comparable EPS of $3.84, up 10%, and Q4 comparable EPS of $0.79, up 10%, both ahead of our long-term growth target

Full-Year and Fourth Quarter Highlights

- Strong full-year global volume growth of 5% led by brand Coca‑Cola, up 3% for both the full year and the quarter. Full-year and fourth quarter global volume grew across every geographic operating group. Global volume grew 3% in the quarter, in line with our long-term growth target, driven by solid international volume growth of 4% and North America volume growth of 1%.

- Full-year reported net revenues grew 33% and comparable currency neutral net revenues grew 29%, reflecting the acquisition of Coca‑Cola Enterprises' (CCE) former North America operations in the fourth quarter of 2010. Fourth quarter 2011 reported net revenues grew 5% and comparable currency neutral net revenues grew 6%, in line with our long-term growth target.

- Full-year reported operating income grew 20% and comparable currency neutral operating income grew 12%. Fourth quarter reported operating income grew 68% and comparable currency neutral operating income grew 14%, ahead of our long-term growth target.

- Four-year productivity program successfully completed, with annualized savings over $500 million, exceeding the original target range of $400 to $500 million.

- Launching new "Productivity and Reinvestment" program with incremental annualized savings of $550 to $650 million by the end of 2015 as a natural outgrowth of the Company's 2020 Vision to design and implement the most effective and efficient business system.

ATLANTA, Feb. 7, 2012 - The Coca‑Cola Company today reports strong full-year and fourth quarter 2011 operating results, once again meeting or exceeding its long-term growth targets and gaining full-year volume and value share in total nonalcoholic ready-to-drink (NARTD) beverages as well as in both sparkling and still beverages. The Company's strong 2011 performance, combined with its optimized and advantaged system, positions it well to deliver long-term, sustainable growth.

Muhtar Kent, Chairman and Chief Executive Officer of The Coca‑Cola Company, said, "Today, I am pleased to share that The Coca‑Cola Company continues its momentum toward realizing our 2020 Vision, with stronger brands, clear strategies and well-focused execution to drive further growth. We once again achieved financial results for both the year and the quarter in line with, or ahead of, our long-term targets, with quarterly volume and revenue growth in every one of our five geographic operating groups. Importantly, we also continued to increase our global volume and value share in 2011.

"Even as we believe that global market volatility will continue in the near term, the breadth of our global footprint and the strength of our brands create a resilient business that was built for times like these. As we enter into the third year of our 2020 Vision, our Roadmap for Winning Together remains clear. The assumptions that shaped our 2020 Vision have not changed. Our expectations for long-term, sustainable and balanced growth across emerging and developed markets have not wavered. And we will continue to make significant investments in our future all around the world to support the tremendous opportunity we see in nonalcoholic ready-to-drink beverages, one of the fastest growing segments in consumer packaged goods.

"In a world looking for hope, optimism and renewal, Coca‑Cola is privileged to be refreshing a thirsty world. Our solid performance reflects the continued investments we have made over time and in every economic condition to strengthen the health of our brands, starting with brand Coca‑Cola, the very oxygen of our business. With our well-aligned global bottling system, world-class brands, strong financial discipline and a clear roadmap for growth, we are confident that we will achieve our long-term growth targets and continue to deliver increasing shareowner value. We truly believe we are just getting started and that our best and brightest days lie ahead. Thank you for your continued trust and confidence in The Coca‑Cola Company."


The Coca‑Cola Company reported worldwide volume growth of 5% for the full year and 3% during the quarter. Excluding new cross-licensed brands in North America, primarily Dr Pepper brands (which the Company began distributing Oct. 2, 2010), worldwide volume grew 4% for the full year, at the high end of our long-term growth target. Volume growth for the full year was well-balanced across the globe, with solid growth in key developed markets like North America, Japan and Germany and double-digit growth in key emerging markets like India and China. In addition, solid growth continued in countries with per capita consumption of Company brands less than 150 eight-ounce servings per year, with volume up 6% for the full year and 4% in the quarter. For both the full year and the quarter, we grew global volume and value share in NARTD beverages, with volume and value share gains across most beverage categories. Further, our immediate consumption beverages were up 4% globally in 2011, driven by focused in-store activation efforts and cold drink equipment expansion.

We continued to see growth in sparkling beverages, with gains in global volume and value share for the full year and in the quarter. This growth was driven by our continued focus on and investment in our brands, starting with brand Coca‑Cola. Brand Coca‑Cola volume grew 3% in both the full year and the quarter, with strong growth in the fourth quarter in a number of markets around the world, including 33% in Thailand, 15% in India, 13% in China, 12% in Argentina, 9% in Germany, 8% in Russia, 4% in both Mexico and France, and 3% in Japan. Worldwide sparkling beverage volume grew 2% in the quarter, with international sparkling beverage volume up 3% as we continue to focus on innovative, globally scaled marketing campaigns. For the full year, worldwide sparkling beverage volume grew 4%, with new cross-licensed brands in North America, primarily Dr Pepper brands, contributing one percentage point of this growth.

Worldwide still beverage volume grew 8% for the full year and 6% in the quarter, led by growth across the portfolio, including ready-to-drink teas, juices and juice drinks, energy drinks and water brands. International still beverage volume grew 10% for the full year and 7% in the quarter, and North America still beverage volume grew 4% for the full year and 3% in the quarter. We grew global still beverage volume and value share for the full year. In the quarter, we grew global still beverage volume share and successfully held value share as consumers continue to experience macroeconomic volatility. Minute Maid Pulpy continues to expand globally, with 20% volume growth in 2011. Energy drinks volume grew 19% in the quarter with broad distribution of our Burn energy brand, which is now available in nearly 80 countries. Water volume grew 7% in the quarter as we continue to focus on innovative and sustainable immediate consumption packaging like our PlantBottle™ in North America, which is driving new customer listings, and our I LOHAS/Ecoflex lightweight crushable bottle for water brands in Asia and Latin America. Packaging innovations like these underscore our commitment to ensure the long-term sustainability of our packaged water business and our focus on reducing our carbon footprint.


- All references to growth rate percentages, share and cycling of growth rates compare the results of the period to those of the prior year comparable period.

- "Concentrate sales" represents the amount of concentrates, syrups, beverage bases and powders sold by, or used in finished beverages sold by, the Company to its bottling partners or other customers.

- "Sparkling beverages" means NARTD beverages with carbonation, including energy drinks and carbonated waters and flavored waters.

- "Still beverages" means nonalcoholic beverages without carbonation, including non-carbonated waters, flavored waters and enhanced waters, juices and juice drinks, teas, coffees, sports drinks and non-carbonated energy drinks.

- "Organic" when used with reference to North America volume performance means volume excluding new cross-licensed brands, principally Dr Pepper brands.

- All references to volume and volume percentage changes indicate unit case volume, except for the reference to North America's "as reported" volume. All volume percentage changes, unless otherwise noted, are computed based on average daily sales. "Unit case" means a unit of measurement equal to 24 eight-ounce servings of finished beverage. "Unit case volume" means the number of unit cases (or unit case equivalents) of Company beverages directly or indirectly sold by the Company and its bottling partners to customers.

- For both North America and Bottling Investments Group, net revenue growth attributable to volume reflects the increase in "as reported" volume, which is based on as reported sales rather than average daily sales. North America's "as reported" volume represents CCR's as reported unit case sales (which are equivalent to concentrate sales) plus non-Company-owned bottling operations' concentrate sales.

- Fourth quarter 2011 financial results were impacted by one additional selling day, which offset the impact of one less selling day in first quarter 2011 results. Unit case volume results are not impacted by the variance in selling days due to the average daily sales computation referenced above. First quarter 2012 financial results will be impacted by one less selling day, and fourth quarter 2012 financial results will be impacted by two additional selling days.

- The Company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes that certain non-GAAP financial measures provide users with additional meaningful financial information that should be considered when assessing our ongoing performance. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial information does not represent a comprehensive basis of accounting.

- Our long-term revenue and operating income growth targets are on a comparable currency neutral basis and exclude structural changes. Our long-term volume growth target is on a comparable basis, excluding the effect of structural changes. Our long-term EPS growth target is on a comparable basis.

About The Coca‑Cola Company

The Coca‑Cola Company (NYSE: KO) is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Coca‑Cola, the world's most valuable brand, our Company's portfolio features 15 billion-dollar brands including Diet Coke®, Fanta®, Sprite®, Coca‑Cola® Zero™, vitaminwater®, Powerade®, Minute Maid®, Simply™, Georgia™ and Del Valle®. Globally, we are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy our beverages at a rate of 1.8 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that reduce our environmental footprint, support active, healthy living, create a safe, inclusive work environment for our associates, and enhance the economic development of the communities where we operate. Together with our bottling partners, we rank among the world's top 10 private employers with more than 700,000 system associates. For more information, visit www.coca-colacompany.com/, follow us on Twitter at www.twitter.com/CocaColaCo or find us on LinkedIn at www.linkedin.com/company/the-coca-cola-company/.

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