Wednesday, March 13, 2019
Coca-Cola Company Financial Results Analysis Essay
This paper will contract to discuss the atomic number 7 American mart for The Coca-Cola bon ton in the daze to sight maturation or declines for the period, discuss the drivers of lucrativeness during the derriere at The Coca-Cola order and the likely long-term cushion of these drives on meshwork, discuss the EPS results for the run in comparison to historic results and long-term growth targets, and discuss the emerge markets for The Coca-Cola social club and the likely time to come impact on earnings per dispense. Coca-Cola fellowship Financial Results AnalysisDiscuss the North American market for The Coca-Cola gild in the impact to flashiness growth or declines for the periodThe North American market for The Coca-Cola corporation is growing positively. Increasing mobility of the friendship and move a positive image for emerging new middle separate clients is fueling Coca-Cola into claiming the title of number one and scarcely(a) beverage producer in North Ame rica. Providing that outside factors do not put a right on the economy, strategic focus of building a strong brand, creating a positive value for the products, and keeping with sound investment practices will underwrite the continuing growth of The Coca-Cola Company.For the first quarter of 2012, the North American market for The Coca-Cola Company impact on volume was positive. First quarter describe that the North America Groups volume grew 2% in the quarter. (Muhtar Kent, 2012) The crystalize revenues increased by 5% with as reported volume growth of 1%. (Muhtar Kent, 2012) The volume growth reflected the effect of having one less(prenominal) day for the quarter in the menstruum year. There was also a positive terms/ mix of 3% and a 1% service due to the structural change in relation to the acquisition of Greayt Plains Coca-Cola Bottling Company. (Muhtar Kent, 2012) sparkling beverage volume, drinks with carbonation, grew by 1% for the quarter and still beverage volume gre w by 6%. (Muhtar Kent, 2012)There was a reported decline in operating income in the first quarter. (Muhtar Kent, 2012) Due to the cycling of lower good costs in anterior periods as well as having one less day for sales in the current year quarter, similar currency nuetral operating income declined 9% in the quarter. (Muhtar Kent, 2012) This decline may be linked to current year timing in comparison to the prior year, which was comtemplated in The Coca-Cola Companys internal planning process. (Muhtar Kent, 2012)Discuss the drivers of profitability during the quarter at The Coca-Cola Company and the likely long-term impact of these drives on profits.The drivers for profitability came from strong brand programming, positive pricing of products and overall anatomical structure change. Smart investing is also another driver of profitability. The advertisement seen at events and on television programming has helped push The Coca-Cola Companys products into the bewitch of the consumer s. The planning processes have positioned The Coca-Cola Company into staying conservative with its investments and watch the market fluctuations as to creating long term investment growth possibilities. (Muhtar Kent, 2012) Things on the radar for The Coca-Cola Company include watching the employment rate in the countries where they are located and the economic environment globally, in relation to if the markets are improving or declining. (Muhtar Kent, 2012) Keeping brands and investments healthy and positive are the main drivers that will impact the long term profitability of this company.Discuss the Earnings per Share results for the quarter in comparison to historic results and long-term growth targets.The earnings per share reported for the first quarter was $0.89. (Muhtar Kent, 2012) In comparison to April 30, 2011, the diluted net income per share was up by 9%, up from $0.82. (Muhtar Kent, 2012) The Coca-Cola Company launched a new program that was to starting the first quart er of 2012 and ending in 2015 called the Productivity and Reinvestment program. (The Coca-Cola Company Reports Full-Year and Fourth withdraw 2011 Results, 2012) This program ihas been class to provide an incremental yearly nest egg of $550 to $650 million. (The Coca-Cola Company Reports Full-Year and Fourth Quarter 2011 Results, 2012) This goal is fueled by the more than $500 million annualied savings from the previous productivity program launched in 2009 and ending in 2011. (The Coca-Cola Company Reports Full-Year and Fourth Quarter 2011 Results, 2012) The Companys 2020 goal of designing and implementing the most(prenominal) effective and efficient business system is well on its manner towards becoming a reality.Discuss the emerging markets for The Coca-Cola Company and the likely future impact on earnings per shareVolume growth for newer markets in China, Japan, and Thailand are on the forefront of The Coca-Cola Companys main sway of places to increase their product presenc e and strengthen their brand. Having a good price mix of investments and watching the economic status of these countries will help the Company to make sound investment strategies and increase their earnings per share in these regions. China will be an important player in the growth of business for The Coca-Cola Company.This is one of the fastest and largest markets to gain control of and strong market practices, along with bringing new jobs to this powerhouse economy will only increase the likelyhood of achieving a positive earnings per share return. In Japan, expanding the current market of items like coffee, sparkling beverages, and teas would help to increase sales in this country. Keeping the brand present as this country tries to recover from a natural disaster in 2011 will help to ease The Coca-Cola Companys presence back into the line of things for the consumers in this market. Working almost with bottling groups and keeping good ties are helping to spur coke in a positive direction as Japan attempts to recover from the prior years decline due to natural disasters.The Coca-Cola Companys outlook remains positive as it attempts to keep moving forrader in the market of beverages. The Companys long term goals of increase its efficiency in branding, increasing its productivity, creating new jobs globally, and working on restructuring the company is helping to keep the Company as a top contention in the beverages category and will help maximize its efforts to increase profits for itself and the shareholders.
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