The Coca-Cola Company (NYSE:KO) Q3 2016 Earnings Conference Call - Final Transcript

Oct 26, 2016 • 09:00 am ET


The Coca-Cola Company (NYSE:KO) Q3 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 Third 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 like to remind everyone that the purpose of this conference is to talk with investors and, therefore, questions from the media will not be addressed. Media participants should contact Coca-Cola's Media Relations department if they have questions.

I would now like to introduce Tim Leveridge, Vice President and Investor Relations Officer. Mr. Leveridge, you may begin.

Tim Leveridge

Thank you, Operator. Good morning and thank you for being with us today. I'm joined by Muhtar Kent, our Chairman and Chief Executive Officer; James Quincey, our President and Chief Operating Officer; and Kathy Waller, our Chief Financial Officer. Before we begin, I'd like to inform you that you can find webcast materials in the Investors section of our company website at that support the prepared remarks by Muhtar, James and Kathy this morning.

I'd also like to note that we have posted schedules under the Financial Reports & Information tab in the Investors 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 discussion, to our 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 for 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 pressing question first and then reenter the queue in order to ask any follow-ups.

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

Muhtar Kent

Think you, Tim, and good morning, everyone. Today, I'll touch briefly on a few key highlights before handing off to James to provide a more detailed operational review of our performance. I'm pleased to report that we delivered third quarter results in line with our expectations, and we're on track to deliver against our full-year expectations.

Our continued focus on our five strategic initiatives enabled us to report another quarter of global value share gains, with 3% organic revenue growth and over 50 basis points of comparable currency neutral operating margin expansion. Our core business continued to perform well, delivering 4% organic revenue growth year-to-date, in line with our long-term target, driven by our segmented revenue growth strategies, improving marketing and portfolio diversification. Within our core business, developed markets performed well, delivering solid revenue results with 2% unit case volume growth year-to-date and a continued focus on price realization.

While we continue to see challenges in many emerging and developing markets, we're taking action to improve our performance. Importantly, we're delivering the profit target we laid out at the beginning of