Coca Cola 2Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“we were faced with unusually widespread wet and cold weather conditions across the multiple regions, including North America and across Northern Europe and India all of which impacted our industry.”

” Latin America, we grew volume 2% in the quarter and 3% year to date. Volume growth was a little software in the quarter due to macroeconomic challenges in the few major markets, specific increase in consumer debt levels and higher food inflations along with concern over transportation fees contributed to some civil unrest and faster consumer spending in Brazil. In Mexico, weaker job creation and higher inflation impacted disposable income resulting in reduced retail sales.”

“turning to Coca-Cola International starting with Europe. The weak economy continues to be a key factor affecting our performance in Europe especially in the southern regions where unemployment remains high while consumer confidence and expenditures remain low.”

“As is well publicized, China’s economy has been slowed as this is now being soft consumer spending. China’s first half retail sales was the slowest in 10 years while much of the growth in the non-alcoholic ready to drink beverage industry in the second quarter came from the value oriented water category.”

“we saw things in Brazil that we hadn’t seen before, the economy slowed, there were social unrest. It didn’t last very long, things are slowly getting back to normal and we expect a better performance sequentially as we progress through the year in Brazil and in Mexico.”

“It’s customary sometimes that when in the kind of businesses that we are in, when you have a blip in your volume because of a confluence of events some of which are — was not in your control. The first thing you do go our and cut marketing, and I think if you look at our numbers, we have continued to invest aggressively in our brand through the second quarter, through the first — in the first half and as you know every investment and marketing does not pay back in that quarter, it pays back in future quarters.”

“It’s customary sometimes that when in the kind of businesses that we are in, when you have a blip in your volume because of a confluence of events some of which are — was not in your control. The first thing you do go our and cut marketing, and I think if you look at our numbers, we have continued to invest aggressively in our brand through the second quarter, through the first — in the first half and as you know every investment and marketing does not pay back in that quarter, it pays back in future quarters.”

“we always believe here in the Coca-Cola Company, the best ideas are outside.”

“our business, we have said many times, is about brand…I think that is what this business is all about, adding value through brands to our system and I’m confident that you will see us add many more billion dollar brands to our roster in the near future.”