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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