Coca-Cola Q4 Adj. Profit Meets View, But Revenues Miss

(RTTNews) - Beverages giant Coca-Cola Co. (KO) reported Tuesday a profit for the fourth quarter that decreased eight percent from last year, despite higher worldwide volumes, reflecting a revenue drop. However, adjusted earnings per share matched analysts' expectations, while quarterly revenues missed their estimates.

"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," Chairman and CEO Muhtar Kent said.

The Atlanta, Georgia-based company reported net income of $1.71 billion or $0.38 per share for the fourth quarter, lower than $1.87 billion or $0.41 per share in the prior-year quarter.

Excluding charges and gains, net income for the quarter was $2.06 billion or $0.46 per share, compared to $2.05 billion or $0.45 per share in the year-ago quarter. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Net operating revenues for the quarter declined 4 percent to $11.04 billion from $11.46 billion in the same quarter last year, and missed thirteen Wall Street analysts' consensus estimate of $11.31 billion. Meanwhile, comparable currency neutral net revenues grew 4 percent.

Worldwide volumes grew 1 percent, reflecting volume growth in Europe, Pacific as well as Eurasia and Africa, partially offset by a decline in North America and flat volumes in Latin America.

The company said worldwide sparkling beverages volume was flat. Worldwide still beverage volume grew 6 percent, with growth across most beverage categories, including juices and juice drinks, ready-to-drink teas, sports drinks, packaged water, and energy drinks.

For fiscal 2013, the company reported net income of $8.58 billion or $1.90 per share, lower than $9.02 billion or $1.97 per share in the prior year. Excluding charges and gains, adjusted net income for the year was $9.37 billion or $2.08 per share, compared to $9.22 billion or $2.01 per share in the year ago.

Net operating revenues for the full year declined 2 percent to $46.85 billion from $48.02 billion in the previous year. Meanwhile, comparable currency neutral net revenues grew 3 percent.

Analysts expected the company to report full-year 2013 earnings of $2.09 per share on annual revenues of $47.24 billion.

"As we work to restore momentum in our business during 2014, we see many reasons to believe we can accelerate our growth and achieve our 2020 Vision. We are committed to accelerating marketing investments in our brands, further advancing our innovation strategies and maximizing productivity and reinvestment for growth. All of us at The Coca-Cola Company remain resolute in our commitment to deliver results in line with our long-term growth model and 2020 Vision for sustainable value and success," Kent added.

The company noted that it is expanding its previously announced productivity and reinvestment program to generate an incremental $1 billion in productivity by 2016 to drive increased media investments in our brands. This commitment is incremental to the productivity and reinvestment initiatives that was committed to deliver from 2012 through the end of 2015.

Earlier in the month, Coca-Cola acquired a 10 percent stake in Green Mountain Coffee Roasters, Inc. (GMCR) as part of a 10-year deal to collaborate on the development of a Keurig Cold at-home beverage system, which will see the production and sale of Coca-Cola branded single-serve, pod-based cold beverages. Coke agreed to acquire about 16.7 million shares of Green Mountain for about $1.25 billion.

In Tuesday's regular trading session, KO is currently trading at $37.75, down $1.18 or 3.03% on a volume of 2.04 million shares. In the past 52-week period, the stock has been trading in a range of $36.83 to $43.43.