Coca Cola 4Q15 Earnings Call Notes

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Ahmet Muhtar Kent – Chairman & Chief Executive Officer

Feel confident that wont have to buy bottlers back again after re-franchising them

“when we announced the acquisition of CCE, it was, essentially, kind of a 25-year-old problem, and we said it would take a while to basically course correct. The level of investment was not where it was needed, and also the level of customer service was not where it was needed. And, essentially, we believe that having more than just one bottler essentially having that big a territory was a better way. Scalable size bottlers, right ownership values, right structure and right capability, and that’s what we have today in North America. And so, we feel very good that this is a model that is going to stay where it is and continue to add value. It’s not going to require any further – all of the time, there will be tweaking necessary, but not the scale that was needed when we did the transaction back at the end of 2010. And so, that was a core decision that was needed. That was a major surgery that was needed, and that’s really what took place.”

James Quincey – President & Chief Operating Officer

The global economy remains challenged and is not improving rapidly

“Our performance in 2015 gives us confidence that our strategies are working and that our underlying performance will be within our long-term targets in 2016. However, let me be clear. The global economy remains challenged and is not improving rapidly. We do see slightly better GDP growth rates for 2016 as compared to 2015. But to be fair, forecasts continue to be revised downwards and there is still much uncertainty. Notable are Brazil and Russia continuing to deteriorate, while China’s growth rate does also slow, putting pressure across many of the emerging and developing markets. Now, while helpful to consumers, the lower price of oil is also causing volatility in the Middle East and other oil-driven export economies, with further implications for those nations.”

The environment in China has pretty clearly slowed down

“in terms of China, clearly not as much as we would have liked to have grown in China in the first quarter; I think that the environment in China is pretty clearly having slowed down, but we think we had a strong momentum over the last couple of years coming back into China.

Kathy N. Waller – Chief Financial Officer & Executive Vice President

Fully hedged on major currencies for 2016

“In terms of coverage, we are fully hedged on the euro, yen and sterling for 2016. We also have near-term coverage in place across several other major currencies.”