Coca-Cola Dials Up the Cash
Coca-Cola (NYSE: KO) late last week gave investors further validation that its strategy to navigate the backlash against sugary sodas is working. For the third quarter, revenue increased by 5% year over year on a non-GAAP (adjusted) basis, primarily due to an increase in pricing. Innovation and marketing led to 3% volume growth of trademark Coca-Cola products in North America, where the company has struggled lately to get people to drink more Coke products.
The bottom line didn't perform as well, with adjusted earnings down 2% year over year. For that, management blamed currency headwinds, shaving six points of growth off earnings. On the flip side, it is very encouraging to see free cash flow up 41% year to date to $6.6 billion.
Overall, investors were pleased with Coke's performance, especially as management issued an upbeat outlook and reaffirmed plans to keep the top-line momentum going in the short term with the launch of a Coke energy drink in the U.S. next year.
Source Fool.com
