Tuesday, October 19, 2010

Coca-Cola's 3Q 2010 Earnings

With the 3Q conference call about to start at 9:30 am this morning, here's a quick summary of the latest Coca-Cola (KO) earnings report.

For the 3rd quarter ended October 1, 2010, net income grew to $ 2.055 billion from $ 1.896 billion driven by strong international volume growth. Quarterly revenue grew 5% to nearly $ 8.43 billion.

Earnings per share grew nearly 9% to 88 cents/share compared to the same period last year. Growth in earnings per share is closer to 12% when adjusting for one time charges primarily related to the CCE transaction.

Excerpt:

The Coca-Cola Company reports strong third quarter operating results, with volume increasing 5% in both the quarter and year-to-date, ahead of our long-term growth target and cycling 2% volume growth in the prior year quarter. Importantly, North America volume grew 2% in the quarter , building on our momentum in this key market as we continue to evolve our franchise system and integrate the acquisition of CCE’s North American business.

International volume increased 6% in the quarter. Eurasia and Africa volume grew 12% in the quarter , with broad-based growth across all business units and beverage categories, including 30% volume growth in Russia and double-digit growth in Turkey, Southern Eurasia and East and Central Africa. India achieved its 17 th consecutive quarter of volume growth despite record rainfall in the quarter and cycling very strong 37% growth in the prior year quarter. Pacific volume grew 11% in the quarter , cycling 6% growth in the prior year quarter. These results were supported by 12% growth in China, as well as growth of 11% in Japan, 19% in the Philippines and 13% in Korea. Latin America volume grew 4% in the quarter , cycling 7% growth in the prior year quarter, with Brazil volume up 13%. Mexico posted even volume results despite adverse weather and cycling 9% growth in the prior year quarter. Europe volume was slightly positive in the quarter, rounding to even , a sequential improvement supported by mid single-digit volume growth in France and the Nordic Region as well as volume growth in Great Britain, Germany and Northern Central Europe. These positive results were partially offset by continuing macro-economic pressures in South and Eastern Europe and the Adriatic Region.

Strong growth continued in countries with per capita consumption of Company brands less than 150 eight-ounce servings per year, with volume up 10% in the quarter and year-to-date in those countries.

According to Coca-Cola more share buybacks will be happening in the very near future. In fact, the company announced plans to buy back $ 2 billion of its stock by the end of this year.

Adam

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