Coca-Cola Reaffirms Full-Year Outlook At Investor Day
Coca-Cola President and CEO, James Quincey, along with senior company leaders, met with investors and analysts yesterday (16 November) to reaffirm the company's 2017 and 2018 outlook.
At the Investor Day, the company reiterated its long-term targets of organic revenue growth (non-GAAP) in the mid single digit range and high single-digit targets for comparable currency neutral EPS growth (non-GAAP).
It added that it is aiming for comparable currency neutral operating income growth (non-GAAP) of 6-8%, and is introducing a new long-term target of 95-100% for adjusted free cash flow conversion ratio (non-GAAP).
The company has also set a target for comparable currency neutral operating margin (non-GAAP) of at least 35% by 2020. It expects 2018 capital expenditures to be $1.9 billion and long-term figures to be between 45-5% of net revenues.
In October, the company reported a ‘solid third quarter’ in its 2017 financial year, reaffirming its full-year outlook. Organic revenue went up by 4% and the company’s operating margin grew by 200 basis points.
However, the company saw net revenues decline by 15%, to $9.1 billion, in the quarter, which it attributed to the ongoing refranchising of bottling territories.
The company has made several notable business deals in that quarter, including the acquisition of Mexican sparkling water brand Topo Chico and a majority interest in Coca-Cola Beverages Africa.
The world’s largest beverage company owns over 500 brands at a value of $21 billion. Together with its bottling partners, it employs over 700,000 people worldwide.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.