Coca Cola 4Q14 Earnings Call Notes

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Each week I read dozens of transcripts from earnings calls and presentations as part of my investment process. Below are some of the most important quotes about the economy and industry trends from the transcripts that I read this week. Full notes can be found here.

New quarterly performance scorecard

“For those of you following our Web cast, you can see our quarterly performance on our new scorecard on Slide 4”

Opportunity to capture more beverage occasions

“Today the average household globally consumes 26 beverages per day and of these 26 beverages only 1.4 are Coca-Cola company brand. Our opportunity to capture more beverage [occasions] is just immense.”

challenging environment

“As we look ahead to 2015, we anticipate continued challenging macroeconomic conditions in many markets around the world”

A transition year for the company

“2015 will be a transition year for the company as we implement our new operating model and our incremental media investments in both 2014 and 2015 taking time to pay off in full. ‘

Comparable currency EPS growth

“While in 2015 we expect to grow comparable currency neutral EPS mid-single digit, from 2016 on we intend to be back to delivering again a long term target of high single digit comparable currency neutral EPS growth.”

7-8% drag on profits from currency

“we now expect an approximate five-point currency headwind on net revenues with a seven to eight-point headwind on profit before tax for the full year 2015.”

A little more volatile macro environment in 2015

“just at a very high level 10,000 feet, 2015 I think we expect the macro environment to even become a little more volatile versus 2013 and 2014.”

Yes it does make sense to invest in marketing

“your question about doesn’t make sense to invest in media and marketing. And the answer is absolutely yes, when we are able to target our investments in media and the way we’re doing it, segmenting them by the different countries and the different regions of the world and improving not just the quantity but also the quality of the media that’s what one of the main important factors that we see driving a better revenue number — a better price mix number. ”