Ahead of its previously announced modeling conference call today, The
Coca-Cola Company is providing an update to its 2014 expectations and
2015 outlook. “During our third quarter earnings conference call, we
outlined strategic actions to accelerate growth,” said Kathy Waller,
Chief Financial Officer of The Coca-Cola Company. “I am pleased to
report that we are moving with speed and that we are making progress on
key action areas. While the full impact of these changes will take time
to materialize, we are confident these actions will drive improving
trends in our business.”
2014 Expectations
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The Company expects full year comparable currency neutral EPS growth
of 4% to 5%, and a currency headwind of 7%.
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The Company expects fourth quarter comparable currency neutral EPS
growth to be even to slightly positive. The impact of currency in the
fourth quarter is expected to be a 6 to 7 point headwind on operating
income and a 9 point headwind on EPS.
2015 Outlook
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As previously indicated, the Company does not expect comparable
currency neutral EPS growth in 2015 to be significantly different from
2014. Longer term, the Company intends to return to delivering against
its stated growth targets.
-
Based on current spot rates, existing hedge positions, and the cycling
of 2014 rates, the Company now expects a 5 to 6 point currency
headwind on profit before tax in 2015.
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The underlying effective annual tax rate on operations in 2015 is
currently expected to be 22.5%. In 2015, the Company is targeting net
share repurchases of $2.0 to $3.0 billion.
Modeling Call
The Company is hosting a conference call with investors and analysts to
provide additional details pertaining to its 2015 outlook and to address
financial and modeling-related questions on Monday, Dec. 15, 2014, at
4:30 p.m. EST. Ms. Waller will host the call.
Investors and analysts are invited to join a live webcast of the
conference call from the Company’s website, www.coca-colacompany.com
in the “Investors” section. Presentation materials for the conference
call will be available for download. A replay in downloadable MP3 format
and a transcript of the call will also be available within
24 hours on the Company’s website.
About The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is the world's largest beverage
company, refreshing consumers with more than 500 sparkling and still
brands. Led by Coca-Cola, one of the world's most valuable and
recognizable brands, our Company's portfolio features 17 billion-dollar
brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater,
Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, we are
the No. 1 provider of sparkling beverages, ready-to-drink coffees, and
juices and juice drinks. Through the world's largest beverage
distribution system, consumers in more than 200 countries enjoy our
beverages at a rate of 1.9 billion servings a day. With an enduring
commitment to building sustainable communities, our Company is focused
on initiatives that reduce our environmental footprint, support active,
healthy living, create a safe, inclusive work environment for our
associates, and enhance the economic development of the communities
where we operate. Together with our bottling partners, we rank among the
world's top 10 private employers with more than 700,000 system
associates. For more information, visit Coca-Cola Journey at www.coca-colacompany.com,
follow us on Twitter at twitter.com/CocaColaCo,
visit our blog, Coca-Cola Unbottled, at www.coca-colablog.com
or find us on LinkedIn at www.linkedin.com/company/the-coca-cola-company.
Forward-Looking Statements
This press release may contain statements, estimates or projections
that constitute “forward-looking statements” as defined under U.S.
federal securities laws. Generally, the words “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “project,” “will” and similar
expressions identify forward-looking statements, which generally are not
historical in nature. Forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from The Coca-Cola Company’s historical experience and our
present expectations or projections. These risks include, but are not
limited to, obesity concerns; water scarcity and poor quality; evolving
consumer preferences; increased competition and capabilities in the
market place; product safety and quality concerns; increased demand for
food products and decreased agricultural productivity; changes in the
retail landscape or the loss of key retail or foodservice customers; an
inability to expand operations in emerging and developing markets;
fluctuations in foreign currency exchange rates; interest rate
increases; an inability to maintain good relationships with our bottling
partners; a deterioration in our bottling partners' financial condition;
increases in income tax rates, changes in income tax laws or unfavorable
resolution of tax matters; increased or new indirect taxes in the United
States or in other major markets; increased cost, disruption of supply
or shortage of energy or fuels; increased cost, disruption of supply or
shortage of ingredients, other raw materials or packaging materials;
changes in laws and regulations relating to beverage containers and
packaging; significant additional labeling or warning requirements or
limitations on the availability of our products; an inability to protect
our information systems against service interruption, misappropriation
of data or breaches of security; unfavorable general economic conditions
in the United States; unfavorable economic and political conditions in
international markets; litigation or legal proceedings; adverse weather
conditions; climate change; damage to our brand image and corporate
reputation from negative publicity related to product safety or quality,
human and workplace rights, obesity or other issues, even if
unwarranted; changes in, or failure to comply with, the laws and
regulations applicable to our products or our business operations;
changes in accounting standards; an inability to achieve our overall
long-term growth objectives; deterioration of global credit market
conditions; one or more of our counterparty financial institutions
default on their obligations to us or fail; an inability to realize
additional benefits targeted by our productivity and reinvestment
program; an inability to renew collective bargaining agreements on
satisfactory terms, or we or our bottling partners experience strikes,
work stoppages or labor unrest; future impairment charges; multiemployer
plan withdrawal liabilities in the future; an inability to successfully
integrate and manage our Company-owned or -controlled bottling
operations; global or regional catastrophic events; and other risks
discussed in our Company’s filings with the Securities and Exchange
Commission (SEC), including our Annual Report on Form 10-K for the year
ended December 31, 2013, which filings are available from the SEC. You
should not place undue reliance on forward-looking statements, which
speak only as of the date they are made. The Coca-Cola Company
undertakes no obligation to publicly update or revise any
forward-looking statements.
Copyright Business Wire 2014