Coca Cola Reports In Line - Analyst Blog

Coca Cola Company (KO) reported fourth quarter 2009 results with earnings of 66 cents per share, which was in line with the Zacks Consensus Estimate. Earnings were up 3.0% year-over-year.

Net revenues increased 5.4% year-over-year during the quarter, due to a 5% positive impact from currency translation and 1% increase in concentrate sales which were partially offset by a 1% impact from pricing and mix.

Worldwide unit case volume increased 5% in the quarter, aided by a 6% improvement in international unit case volume and a 4% growth in Coca Cola, its trademark brand. The emerging markets of China and India grew an impressive 29% and 20%, respectively.

France also reported a strong growth of 12% during the fourth quarter. In addition, strong unit case volume growth was observed in other key markets including Brazil, Mexico and Germany. Europe posted a 1% volume growth, while North American volume declined 1%.

Carbonated soft drink (CSD) case volume grew 3% during the quarter, after a continued decline for more than a year. Non carbonated beverage (NCB) volume increased 9% led by sound growth across the portfolio, including juices and juice drinks, sports drinks, teas and water brands. In North America, NCB’s were flat year-over-year.

Gross profit margin expanded 74 basis points (bps) to 64.7% in the quarter versus 64.0% in the comparable prior-year period. The increase was primarily attributable to positive foreign currency fluctuations and lower commodity costs.

Cash from operations for the year was $8.2 billion, reflecting an increase of 8%. The company has a debt-to-capitalization ratio of 16%.

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