The Coca-Cola Company (NYSE:KO) Q2 2019 Earnings Conference Call - Final Transcript

Jul 23, 2019 • 08:30 am ET


The Coca-Cola Company (NYSE:KO) Q2 2019 Earnings Conference Call - Final Transcript


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At this time, I'd like to welcome everyone to The Coca-Cola Company's Second Quarter Earnings Results Conference Call. Today's call is being recorded. [Operator Instructions] All participants will be on 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 any questions.

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

Tim Leveridge

Good morning, and thank you for joining us today. I'm here with James Quincey, our Chief Executive Officer; and John Murphy, our Chief Financial Officer. Before we begin, I'd like to inform you that we posted schedules under the Financial Reports and Information tab in the Investors section of our Company website at These schedules reconcile certain non-GAAP financial measures which may be referred to by our senior executives during this morning's discussions to our reports at -- to our results as reported under generally accepted accounting principles.

I would also like to note that you can find additional materials in the Investor section of our Company website, including those that provide an analysis of our margin structure. In addition, this conference call may contain forward-looking statements, including statements concerning long-term earnings objectives and should be considered in conjunction with cautionary statements contained in our earnings release and in the company's most recent periodic SEC report. Following prepared remarks this morning, we will turn the call over for your questions. Please limit yourself to one question and if you have more than one, please ask your most pressing first and then re-enter the queue.

Now let me turn the call over to James.

James Quincey

Thanks, Tim and good morning everyone. So here we are halfway through the year and we see good momentum in our business, as we continue our transformation as a total beverage Company. We gained global value share with a balanced contribution from both developed and emerging markets, led by a strong performance in our sparkling soft drink business.

Organic revenue growth is up 6% year-to-date including growth across all operating segments and with a good balance between volume and pricing. Worth noting about a point of that is due to the benefit of timing, the underlying results that was still ahead of plan. Unit case growth, volume grew 2% year-to-date and 3% in the quarter. Comparable currency neutral EPS was up 13% year-to-date, partially offset by a stronger than unanticipated 9% currency headwind resulting in comparable EPS growth of 3%. While currencies continue to be a headwind, we are focused on achieving our full-year EPS target through stronger performance in the underlying business.

Looking around the world, we delivered strong top line growth in the first half driven by both developed and emerging markets. In Asia Pacific, we grew organic revenue 4% during the