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Consultant

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Submitted By philcolumb
Words 1333
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Introduction and Analysis

Company Profile
Q2 Performance
Economic Moat
Financials
Key Ratios
Valuations

1. About the Company

The Coca-Cola Company was founded in 1886 and is headquartered in Atlanta, Georgia. It engages in the manufacturing, marketing, and selling of nonalcoholic sparkling and still beverages and beverage concentrates. The Company’s segments include Europe, Asia, Africa, North America, and Latin America. Among its main brands are Coca-Cola, Sprite, Fanta, Diet Coke, PowerAde, Dasani, and Vitamin Water.

Across the beverages and concentrates market, Coca-Cola competes with PepsiCo, Inc., Nestle, Dr Pepper Snapple Group, Inc., Groupe Danone, Kraft Foods Inc. and Unilever.

2. Q2 Performance

Inclement weather conditions within the US, India, and Central Europe, stagnant European, Chinese, and Brazilian economies, and declines in carbonated soft drink consumption in North America adversely impacted Coca-Cola’s quarterly figures. These elements contributed to a 3% fall in reported revenue in the second quarter compared to a year earlier, or $12.75B from $13.09B. Analysts’ expectations were $12.96B.

In the face of these negative factors, the Company saw a 1% increase in volumes globally, a 2% increase in comparable constant currency sales (excluding structural changes), a 4% increase in comparable constant currency operating income, and a 3.3% increase in adjusted earnings per share in the second quarter.

3. Economic Moat

There are a number of factors that have a great influence on Coca-Cola’s wide economic moat, i.e. its large and sustainable competitive advantage over other companies in its industry. Primarily, the combination of the Company’s immensely popular brand names and its superlative global distribution network allow Coca-Cola to succeed financially and to continue to grow its market share globally.

Although

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