Coca Cola Company (KO) has reported a 55.54 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $550 million, or $0.13 a share in the quarter, compared with $1,237 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,593 million, or $0.37 a share compared with $1,678 million or $0.38 a share, a year ago.
Revenue during the quarter dropped 5.91 percent to $9,409 million from $10,000 million in the previous year period. Gross margin for the quarter expanded 22 basis points over the previous year period to 59.68 percent. Total expenses were 85.60 percent of quarterly revenues, up from 84.82 percent for the same period last year. That has resulted in a contraction of 78 basis points in operating margin to 14.40 percent.
Operating income for the quarter was $1,355 million, compared with $1,518 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,979 million compared to $2,006 million in the prior year period. At the same time, adjusted operating margin improved 97 basis points in the quarter to 21.03 percent from 20.06 percent in the last year period.
The Coca-Cola Company today reported fourth quarter and full year 2016 operating results. Muhtar Kent, chairman and chief executive officer of The Coca-Cola Company, said, "We are pleased to report that we ended 2016 with fourth quarter top- and bottom-line growth within our expectations. Strong price/mix stemming from our continued focus on driving revenue and solid performance in our developed markets helped offset persistent macroeconomic pressures in our emerging and developing markets. Our flagship market of North America grew net revenues 8% for the quarter and 4% for the year, outperforming total retail value growth for both the North America nonalcoholic ready-to-drink beverage industry and U.S. consumer packaged goods companies."
Operating cash flow declines
Coca Cola Company has generated cash of $8,796 million from operating activities during the year, down 16.45 percent or $1,732 million, when compared with the last year.
The company has spent $999 million cash to meet investing activities during the year as against cash outgo of $6,186 million in the last year. It has incurred net capital expenditure of $2,112 million on net basis during the year, down 14.42 percent or $356 million from year ago.
The company has spent $6,545 million cash to carry out financing activities during the year as against cash outgo of $5,113 million in the last year period.
Cash and cash equivalents stood at $8,555 million as on Dec. 31, 2016, up 17.05 percent or $1,246 million from $7,309 million on Dec. 31, 2015.
Debt moves up marginally
Coca Cola Company has witnessed an increase in total debt over the last one year. It stood at $45,709 million as on Dec. 31, 2016, up 3.61 percent or $1,593 million from $44,116 million on Dec. 31, 2015. Total debt was 52.38 percent of total assets as on Dec. 31, 2016, compared with 48.97 percent on Dec. 31, 2015. Debt to equity ratio was at 1.97 as on Dec. 31, 2016, up from 1.71 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.46 for the quarter from 10.62 for the same period last year.
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