http://www.morningstar.com/earnings/54471284-cocacola-co-ko-q2-2013.aspx

Coca-Cola Co KO
Q2 2013 Earnings Call Transcript

Transcript Call Date 07/16/2013

Operator: At this time I would like to welcome everyone to the Coca-Cola Company's Second Quarter 2013 Earnings Results Conference Call. Today’s call is being recorded. If you have any objections, please disconnect at this time. All participants will be on a listen-only mode until the formal question-and-answer portion of the call. Due to the interest in this call, we request a limit of one question per person.

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 like to now introduce Jackson Kelly, Vice President and Investor Relations Officer. Mr. Kelly, you may begin.

Jackson Kelly - IR: Good morning, and thank you for being with us today. I'm joined by Muhtar Kent, our Chairman and Chief Executive Officer; and Gary Fayard, our Chief Financial Officer. Following prepared remarks from Muhtar and Gary this morning, we will turn the call over for your questions. Ahmet Bozer, President of Coca-Cola International; Steve Cahillane, President of Coca-Cola Americas; and Irial Finan, President of our Bottling Investments Group, will also be available for the Q&A session.

Before we begin, I would like to remind you that 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.

In addition, I would also like to note that we have posted schedules under the Financial Reports and Information tab in the Investors section of our Company website at www.coca-colacompany.com. These schedules reconcile certain non-GAAP financial measures which should 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.

Now, let me turn the call over to Muhtar.

Muhtar Kent - Chairman and CEO: Thank you, Jackson, and good morning, everyone. Our second quarter volume performance came in below our expectations. There was a confluence of factors that effectively led to unusually weak second quarter volume results. We continued to be (indiscernible) in Europe slowing economic conditions across some markets like Asia and Latin America and social unrest in Southeast Europe, Middle East, and Brazil.

On top of this, we were faced with unusually widespread wet and cold weather conditions across multiple regions, including North America, across Northern Europe and India, although which impacted the entire industry. Consequently, we grew global volume 1% in the second quarter leading to year-to-date volume growth of 3%.

Our comparable currency neutral operating income, excluding structural, grew 5% year-to-date. And both in the quarter and year-to-date, we gained global volume and value share in nonalcoholic ready-to-drink beverages as well as in both sparkling and still beverages. These gains included volume and value share increases in core sparkling, juice, tea and water, although which underscores the real strength of our brand and the global reach of our system.

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