The Coca-Cola Company (NYSE:KO) Q1 2017 Earnings Conference Call - Final Transcript

Apr 25, 2017 • 09:00 am ET


The Coca-Cola Company (NYSE:KO) Q1 2017 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 2017 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. 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, sir.

Tim Leveridge

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.

(Forward-Looking Cautionary Statement)

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 pertinent question first and then return to the queue in order to ask additional ones.

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

Muhtar Kent

Thank you, Tim, and good morning, everyone. This will be my last earnings call as CEO of this great company. First and foremost, I'd like to thank all of you for your support and collaboration. It's been my distinct privilege and pleasure to serve you and all of our shareholders as CEO for almost nine years now. During this time, we achieved a lot. We delivered $110 billion of share-owner value with continued annual dividend increases and growth in our share price. We embarked on the biggest re-franchising in bottling restructuring effort in our history, transforming our company to a pure and effective consumer and brand business with approximately 50% of our Global Bottling business in positive motion.

With today's announcement, we're on track to achieve almost $5 billion in savings from 2008 through 2019, through productivity and reinvestment programs. We completed a net total of around $16 billion of M&A, bringing in some of our strongest and fastest-growing brands, including smartwater, Santa Clara, Innocent, Jugos del Valle, Honest Tea and Fairlife, just to name a few. We introduced almost 1,000 new products and added $9-billion brands, bringing our total to 21. We grew daily servings by nearly 0.5 billion from 1.5 billion at the end of 2007 to more than 1.9 billion today, and we achieved 39 consecutive quarters of global value-share gains.

By focusing on our Three W's; Women, Water and Well-Being, we've created the most progressive, sustainable and connected business cycle, empowering 1.7 million women in our value chain through the 5by20 initiative to support economic empowerment of 5 million women by 2020, becoming the first Fortune 500 company to announce that it is replenishing 100% of its global water