The Coca‑Cola Company 2010 first quarter financial results

Today, our company reports solid growth in the first quarter of 2010. We continued to win in the marketplace, gaining global value share and delivering volume and profit in line with our long-term targets, all while taking decisive action to strategically advance our North America business and further strengthen our franchise system in Europe.

• Solid worldwide unit case volume growth of 3 per cent in the quarter, in line with our long-term volume target, and driven by international volume growth of 5 per cent.
• First quarter reported EPS was $0.69, up 19 per cent, with comparable EPS up 23 per cent to $0.80.
• Reported operating income increased 17 per cent in the quarter, and comparable currency neutral operating income grew 9 per cent.
• Strong cash flow generation continued, with first quarter cash from operations up 52% to $1.3 billion.
• Gained global non alcoholic ready-to-drink beverage value share and maintained global volume share. International volume and value share gains continued.
• Integration planning for the Coca‑Cola Enterprises deal strategically advances and remains on track with an expected fourth quarter close.
• Productivity initiatives are well on track to achieve goal of $500 million in annualised savings by year-end 2011.

ATLANTA - 20 April 2010 - The Coca‑Cola Company reports solid first quarter 2010 operating results, with unit case volume increasing a strong 3%, in line with our long-term volume target and underscoring the strength of our brands even as global macroeconomic challenges continue. We achieved broad-based international unit case volume growth of 5%. Eurasia and Africa unit case volume grew 11% with continued strong growth of 29% in India and 18% growth in Turkey. Pacific unit case volume grew 5%, cycling 4% in the prior year quarter, and Latin America unit case volume grew 4% with strong 12% growth in Brazil. Europe unit case volume was even with the prior year quarter, with growth in France and the Benelux countries as well as in our Bottling Investment territories including 5% growth in Germany and 2% growth in the Nordic Region. Growth continued in countries with per capita consumption of Company products less than 150 eight-ounce servings per year, with unit case volume up 10% in the quarter.

We gained global value share and maintained volume share in non alcoholic ready-to-drink (NARTD) beverages and core sparkling beverages. We also realised volume and value share gains across juices and juice drinks, sports drinks, coffee and packaged water. Importantly, internationally we gained volume and value share in total NARTD beverages.

Financial Highlights

• First quarter 2010 reported net revenues increased 5%. Net revenues increased 1% on a comparable currency neutral basis, reflecting a 2% impact due to the deconsolidation of certain entities required by a change in accounting guidance, as well as geographic mix.
• First quarter 2010 reported operating income increased 17%, and comparable currency neutral operating income increased 9%. This was driven by a continued strong focus on cost management and the leveraging of productivity initiatives as well as favourable timing of selling, general and administrative expenses.
• Cash from operations in the quarter increased 52% to $1.3 billion. There were no share repurchases during the first quarter due to the pending Coca‑Cola Enterprises (CCE) transaction.
• During the quarter, the company announced its 48th consecutive annual dividend increase, raising the quarterly dividend 7% from 41 cents to 44 cents per common share. This is equivalent to an annual dividend of $1.76 per share, up from $1.64 per share in 2009.

Notes

• All references to growth rate % ages and share compare the results of the period to those of the prior year comparable period. References to cycling of growth rates compare the growth rate of the current period to that of the prior year comparable period.
• "Concentrate sales" represents the amount of concentrates, syrups, beverage bases and powders sold by, or used in finished beverages sold by, the company to its bottling partners or other customers.
• "Sparkling beverages" means nonalcoholic ready-to-drink beverages with carbonation, including energy drinks and carbonated waters and flavoured waters.
• "Still beverages" means non alcoholic beverages without carbonation, including non carbonated waters, flavoured waters and enhanced waters, juices and juice drinks, teas, coffees and sports drinks.
• All unit case volume% age changes are computed based on average daily sales for the first quarter. "Unit case" means a unit of measurement equal to 24 eight-ounce servings of finished beverage, and "unit case volume" means the number of unit cases (or unit case equivalents) of Company beverages directly or indirectly sold by the company and its bottling partners to customers.
• First quarter 2010 results were impacted by one fewer selling day, which will be offset by the impact of one additional selling day in fourth quarter 2010 results.
• Comparable growth rates for first quarter 2010 reflect the impact of the deconsolidation of certain entities required by a change in accounting guidance.
• Our long-term growth targets referenced in this release are on a comparable currency neutral basis and exclude structural changes.