The Coca-Cola Company has reported second-quarter 2016 operating results.
• Reported net revenues declined 5% and organic revenues grew 3% in the quarter.
• Reported EPS was $0.79 and comparable EPS was $0.60 in the quarter.
• Global volume grew 1% year to date and was even in the quarter.
• Global price/mix grew 3% in the quarter, reflecting continued effective pricing and packaging initiatives across key markets.
• Reported operating margin expanded more than 390 basis points and comparable currency neutral operating margin expanded more than 140 basis points.
• Gained global value share in nonalcoholic ready-to-drink beverages.
• Full-year 2016 organic revenues now expected to grow 3%. Full-year comparable currency neutral income before taxes (structurally adjusted) outlook remains 6% to 8%.
Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said: “Despite challenging macroeconomic conditions, structural changes and foreign exchange headwinds which contributed to a 5% decline in reported revenues, we delivered 3% organic revenue growth, gained value share in total nonalcoholic ready-to-drink beverages, expanded our operating margins and grew profits in line with our expectations. Strong performance in some of our largest and most developed markets, including the United States, Mexico and Japan, was offset by difficult external conditions in many of our emerging and developing markets, including China and Argentina. These factors combined to put pressure on our volume and top-line performance in the quarter, especially where we own bottling businesses. In these international operations where external headwinds have proven to be more severe than originally forecast, we are taking action by reassessing local market initiatives where needed and continuing our efforts in driving productivity.
“As we continue the transformation of our business, I am encouraged by our core business performance which grew ahead of our consolidated organic revenues in the quarter. We expect this to continue for the balance of the year as we remain confident in our segmented revenue growth strategy, our innovation pipeline, and efforts to increase and improve our advertising.”