Monday, May 27, 2019
Coca-Cola Company Financial Results Analysis Essay
This paper will attempt to discuss the North American market for The Coca-Cola union in the bushel to volume ripening or dec eviscerates for the layover, discuss the drivers of profitability during the take up at The Coca-Cola fraternity and the likely long-term impact of these drives on profits, discuss the EPS results for the quarter in comparison to historic results and long-term ontogenesis targets, and discuss the emerging markets for The Coca-Cola high society and the likely future impact on earnings per region. Coca-Cola Company Financial Results AnalysisDiscuss the North American market for The Coca-Cola Company in the impact to volume growth or declines for the periodThe North American market for The Coca-Cola Company is growing positively. Increasing mobility of the party and continuing a positive image for emerging new middle physique clients is fueling Coca-Cola into claiming the title of number one drink producer in North America. Providing that outside facto rs do not put a slump on the economy, strategic focus of building a strong fault, creating a positive value for the products, and keeping with sound investment practices will ensure 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 reported that the North America aggroups volume grew 2% in the quarter. (Muhtar Kent, 2012) The net revenues increased by 5% with as reported volume growth of 1%. (Muhtar Kent, 2012) The volume growth reflected the effect of having one less day for the quarter in the current year. There was also a positive price/ mix of 3% and a 1% benefit 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 grew by 6%. (Muhtar Kent, 2012)There was a reported decline in ope rating income in the first quarter. (Muhtar Kent, 2012) Due to the cycling of lower commodity costs in prior periods as well as having one less day for sales in the current year quarter, comparable specie 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 platformming, positive pricing of products and overall structure change. Smart investing is also another driver of profitability. The advertisement seen at events and on television programming has helped urge The Coca-Cola Companys products into the view of the consumers. The planning processes have positioned The Coca-Cola Company into stayi ng 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 alter or declining. (Muhtar Kent, 2012) Keeping brands and investments healthy and positive are the master(prenominal) 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 quarter of 2012 and ending in 2015 called the Productivity and Reinv estment program. (The Coca-Cola Company Reports Full-Year and Fourth Quarter 2011 Results, 2012) This program ihas been set to provide an incremental yearly savings 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 effective and efficient handicraft system is well on its way 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, lacquer, and Thailand are on the forefront of The Coca-Cola Companys main list of places to increase their product presence 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 marketing 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 closely 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 natur al disasters.The Coca-Cola Companys outlook remains positive as it attempts to keep touching forward in the market of beverages. The Companys long term goals of increasing 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 contender in the beverages category and will help maximize its efforts to increase profits for itself and the shareholders.
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