The Coca-Cola Company Updates Currency Outlook & Reaffirms Guidance, Including EPS Growth Target (Non-GAAP), in Advance of De...
June 13 2018 - 1:30AM
Business Wire
In connection with a presentation at the Deutsche Bank Global
Consumer Conference, The Coca-Cola Company today updated its
currency outlook, while also reaffirming other previously announced
guidance for 2018.
The company updated second quarter and full year 2018
expectations for currency based on current rates and including the
impact of hedged positions. The company now expects the currency
headwind to second quarter comparable net revenues (non-GAAP) to be
in the range of 0% to 1% and expects the full year 2018 currency
headwind to comparable net revenues (non-GAAP) to be in the range
of 0% to 1%.
Additionally, the company now expects the currency headwind on
second quarter comparable operating income (non-GAAP) to be
approximately 2% and expects the full year 2018 currency headwind
on comparable operating income (non-GAAP) to be in the range of 2%
to 3%.
The company reaffirmed its remaining, previously announced full
year 2018 expectations, including organic revenue (non-GAAP) growth
of 4% and, despite increasing headwinds from currencies, comparable
EPS from continuing operations (non-GAAP) growth of 8% to 10%.
As previously announced, Chief Financial Officer Kathy Waller
and Chief Growth Officer Francisco Crespo will present at the
Deutsche Bank Global Consumer Conference in Paris today at
approximately 10:30 a.m. CET (4:30 a.m. ET). The company invites
investors to listen to the live audio cast of the presentation at
www.coca-colacompany.com/investors. A replay in downloadable MP3
format will be available within 24 hours after the event on the
company’s website.
2018 Outlook
The 2018 outlook information provided above includes
forward-looking non-GAAP financial measures, which management uses
in measuring performance. The company is not able to reconcile full
year 2018 projected organic revenues (non-GAAP) to full year 2018
projected reported net revenues, full year 2018 projected
comparable currency neutral operating income (adjusted for
structural items and accounting changes) (non-GAAP) to full year
2018 projected reported operating income, or full year 2018
projected comparable EPS from continuing operations (non-GAAP) to
full year 2018 projected reported EPS from continuing operations
without unreasonable efforts because it is not possible to predict
with a reasonable degree of certainty the actual impact of changes
in foreign currency exchange rates; the exact timing and amount of
acquisitions, divestitures and/or structural changes; the exact
timing and amount of comparability items throughout 2018; and the
actual impact of accounting changes. The unavailable information
could have a significant impact on full year 2018 GAAP financial
results.
About The Coca-Cola
Company
The Coca-Cola Company (NYSE: KO) is a total beverage company,
offering over 500 brands in more than 200 countries. In addition to
the company’s Coca-Cola brands, our portfolio includes some of the
world’s most valuable beverage brands, such as AdeS soy-based
beverages, Ayataka green tea, Dasani waters, Del Valle juices and
nectars, Fanta, Georgia coffee, Gold Peak teas and coffees, Honest
Tea, innocent smoothies and juices, Minute Maid juices, Powerade
sports drinks, Simply juices, smartwater, Sprite, vitaminwater and
ZICO coconut water. We’re constantly transforming our portfolio,
from reducing sugar in our drinks to bringing innovative new
products to market. We’re also working to reduce our environmental
impact by replenishing water and promoting recycling. With our
bottling partners, we employ more than 700,000 people, bringing
economic opportunity to local communities worldwide. Learn more at
Coca-Cola Journey at www.coca-colacompany.com and follow us on
Twitter, Instagram, Facebook and LinkedIn.
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 and other
health-related concerns; water scarcity and poor quality; evolving
consumer preferences; increased competition; product safety and
quality concerns; perceived negative health consequences of certain
ingredients, such as non-nutritive sweeteners and
biotechnology-derived substances, and of other substances present
in our beverage products or packaging materials; an inability to be
successful in our innovation activities; increased demand for food
products and decreased agricultural productivity; an inability to
protect our information systems against service interruption,
misappropriation of data or breaches of security; 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 and
throughout the world; failure to realize the economic benefits from
or an inability to successfully manage the possible negative
consequences of our productivity initiatives; inability to attract
or retain a highly skilled and diverse workforce; increased cost,
disruption of supply or shortage of energy or fuels; increased
cost, disruption of supply or shortage of ingredients, other raw
materials, packaging materials, aluminum cans and other containers;
changes in laws and regulations relating to beverage containers and
packaging; significant additional labeling or warning requirements
or limitations on the marketing or sale of our products;
unfavorable general economic conditions in the United States;
unfavorable economic and political conditions in international
markets; litigation or legal proceedings; failure to adequately
protect, or disputes relating to, trademarks, formulae and other
intellectual property rights; adverse weather conditions; climate
change; damage to our brand image or corporate reputation from
negative publicity, even if unwarranted, related to product safety
or quality, human and workplace rights, obesity or other issues;
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; default by or failure of one or more of our
counterparty financial institutions; 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 pension plan
withdrawal liabilities in the future; an inability to successfully
integrate and manage our company-owned or -controlled bottling
operations or other acquired businesses or brands; an inability to
successfully manage our refranchising activities; failure to
realize a significant portion of the 25 anticipated benefits of our
strategic relationship with Monster; 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 Dec.
31, 2017, and our subsequently filed Quarterly Report on Form 10-Q,
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.
The fairlife® brand is owned by fairlife, LLC, our joint venture
with Select Milk Producers, Inc., and fairlife’s products are
distributed by our company and certain of our bottling
partners.
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