Coca-Cola Company Q4 Profit Beats Estimates

(RTTNews) - The Coca-Cola Company (KO) reported that its fourth-quarter net income to shareowners increased to $1.24 billion or $0.28 per share from $770 million or $0.17 per share, last year. Adjusted earnings per share was $0.38, for the quarter. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $0.37 for the quarter. Analysts' estimates typically exclude special items.

Net operating revenues were $10.00 billion compared to $10.87 billion, a year ago. Analysts expected revenue of $9.91 billion for the quarter. The company said fourth-quarter reported net revenue and organic revenue declined 8% and 1%, respectively, in the quarter, primarily due to the impact of six fewer days in the reporting calendar. Global volume grew 3% in the quarter.

For 2016, Coca-Cola expects organic revenue to be up 4% to 5%, in line with its long-term target. Coca-Cola expects full-year comparable currency neutral EPS growth to be 4% to 6% including the impact of 3 to 4 points of structural headwind, primarily due to refranchising, on comparable currency neutral income before taxes. The company is targeting full-year 2016 net share repurchases of $2.0 to $2.5 billion.

Muhtar Kent, CEO, said, "In late 2014, we laid out a clear five-point plan to reinvigorate growth and increase profitability. In 2015, a transition year, we delivered on this plan. Our fourth quarter performance was a testament to the action we took as the Company continued to deliver solid pricing and unit case volume growth, culminating in 4% organic revenue growth for the full year. This top-line growth was led by our flagship market of North America, which delivered its strongest annual performance in three years."

Coca-Cola said it will return to the focus as a higher margin, higher return and less capital intensive operation. With the accelerated refranchising plans announced, the company will move from a system where about 18% of its volume was produced by company-owned bottlers in 2015 to about 3%.