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The Coca-Cola Company Financial Results Analysis - Research Paper Example

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The Coca-Cola Company Financial Results Analysis

There are various interesting issues about the North American market for The Coca-Cola Company in terms of its volume growth or declines for the period. For instance, in the second quarter of 2012, there was a volume growth of 4% at the global level. In the same aspect, in the quarter it turned to 5% in accordance with the year-to-date ratings. Therefore, this suggests that there was a growth of volume by 1% for North America in the succeeding quarter and year-to-date affecting even the international volume that leapt to 5%. Alternatively, in the following second quarter, there was a growth of 3% of net revenues with another 7% of net revenues in the comparable currency (Onkvisit, 2004). This means there were significant growths in the quarters and the net revenues of comparable currency. There was also the operating income standing at 7% with the net revenue of 6%. However, the met revenues have a possibility of decline if there are no checks in the growth of the operating income.
It is also essential to note there are varying drivers of profitability during the quarter at The Coca Cola Company. This has also led to, interesting long-term, impact in terms of profits and eventual success. For example, there is the maximization of returns through close monitoring of profits and minimization of losses. In the prospect of maximization of returns, the company ensures that it gives its shareholders a large portion of their volume sales. (Hannaford, 2007). Alternatively, another driving factor is marketing in the context of distribution and donation of both macro and micro profits. In distribution channels, there is the direct and indirect selling type that gives the beverage company an edge of its competitors such as Pepsi and Nestle among others. Therefore, the long term effect of these profits is expansion and increased production in new markets across the world. The Earning per Share results for the quarter in comparison to historic results and long-term growth targets have interesting information. For instance, in the third quarter, the EPS was a headwind of 5% with comparable net revenue of 7%. This eventually deflated to $ 0.50% in the same third quarter from net revenue of 4%. Similarly, there is also the comparable EPS that stands at 2% from the normal $0.51 in the year-to-date financial analysis (Rich et al 2009). However, if compared to the historic results and the long-term targets, there are various disparities. The historic results posted an EPS of $1.65 from comparable net revenue of 2% and 5% respectively in the third quarter. This means that there will be an increase of volume growth in the context of net revenue and comparable operating income. Furthermore, it would also reflect on the currency neutral of net revenues that affect the financial analysis of Earning per Share. The Coca Cola Company has made tremendous achievements of growth leading to acquisition of other feasible emerging markets. On that account, the emerging markets include Thailand, South Africa, India and China that have displayed a notable consumption of the company’s products (Pacek & Thorniley, 2007). This has led the beverage company to make heavy investments in terms of marketing expansion and distribution network. Similarly, there will be an establishment of new bottling plants that generate profits to equal to the net value of the company. Alternatively, the Coca Cola Compa ...Show more

Summary

The financial results analysis of the Coca Cola Company has been interesting in terms of growth in income and volume. This suggests that the beverage company has strived to meet most of its goals and objectives to acquire the potential emerging markets…
Author : alessiafarrell
The Coca-Cola Company Financial Results Analysis essay example
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