The Coca-Cola Company (NYSE:KO) Q1 2016 Earnings Conference Call - Final Transcript

Apr 20, 2016 • 09:00 am ET


The Coca-Cola Company (NYSE:KO) Q1 2016 Earnings Conference Call - Final Transcript


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At this time, I would like to welcome everyone to The Coca-Cola Company's First Quarter 2016 Earnings Results Conference Call. Today's call is being recorded. If you have any objections, please disconnect at this time. All participants will be in a listen-only mode until the formal question-and-answer portion of the call. (Operator Instructions)

I would now like to introduce Tim Leveridge, VP and IRO. Mr. Leveridge, you may begin.

Tim Leveridge

Good morning and thank you for being with us today. I'm joined by Muhtar Kent, our Chairman and CEO; James Quincey, our President and COO; and Kathy Waller, our CFO.

Before we begin, I'd like to inform you that you can find webcast materials in the Investor section of our company website at that support the prepared remarks by Muhtar, James and Kathy this morning. I would also like to note that we have posted schedules under the financial reports and information tab in the Investor section of our company website.

These schedules reconcile certain non-GAAP financial measures, which may be referred to by our senior executives during this morning's discussions to the results as reported under Generally Accepted Accounting Principles. Please look on our website for this information.

(Forward-Looking Cautionary Statements)

Following prepared remarks this morning, we will turn the call over to your questions. In order to allow as many people to ask questions as possible, we ask that you limit yourself to one question. If you have multiple questions, please ask your most present question first and then re-enter the queue in order to ask any additional ones.

Now, I'd like to turn the call over to Muhtar.

Muhtar Kent

Thank you, Tim and good morning, everyone. 18 months ago I communicated a clear five point plan to reinvigorate our growth and increase profitability.

In February, we reported a successful transition year in 2015, where we made tangible progress on our plan and delivered the full-year expectations we laid out.

I'm pleased to report that in the quarter, first quarter of 2016, we took another positive step in a macro environment, that continues to be challenging.

Today, I will touch briefly on a few key highlights in the quarter before handing off to James to provide a more detailed review of our operational performance.

We're in the midst of transforming The Coca-Cola Company to one that is even more focused on our core value creation model of building and supporting strong brands, enhancing customer value and leading our franchise system.

During the first quarter, our continued focus on our five strategic initiatives enabled us to gain value share and deliver positive top line growth with underlying margin expansion.

With the first quarter behind us, we see the challenging global environment continuing, but we remain committed to our full-year targets we laid out in February for both the top and bottom line performance. From a highlights perspective, we continue to execute our strategic initiatives.

In the first quarter, we unveiled our new global one brand marketing strategy for trademark Coca-Cola under