When Coca-Cola published its figures for the 1st quarter of 2017, there was a distinct lack of buzz. Net income attributable to shareholders declined by 20% to USD 1.18 billion, or 27 cents per share, compared to USD 1.48 billion and 34 cents per share in 2016.
The cost of North American bottling operations weighed heavily on these results, with revenues falling by 11% to USD 9.12 billion. This is the 8th successive quarter of declining sales for the Atlanta-based company. Adjusted quarterly earnings per share came in at 43 cents in Q1 2017, compared with a forecast of 44 cents. For the year, Coca-Cola is expecting a decline in adjusted EPS of 1%-3%, compared to USD 1.91 in 2016.
What Should You Do As An Investor?
When using an online trading broker like UFX, be aware that earnings releases for the companies you follow can often trigger significant volatility on their stock prices. However, Coca-Cola stock (NYSE: KO) didn’t move much after the latest release. Like many other multinationals, its huge global presence and diverse holdings insulate it against the worst effects of disappointing results.
It’s important to stay updated around earnings time for your companies and the stocks you watch. If you invest in a company, it’s essential for you to understand why you’re investing and what is happening with your investment. If you’re not comfortable with volatility, you need to assess your investment style.
Coca Cola Growth Strategies
After the introduction of Coca-Cola Zero and Coca-Cola Life in recent years, Coca-Cola Plus appeared last March in Japan. This sugar-free, calorie-free beverage contains dextrin, which is widely used as a supplement for people with fibre deficiency.
According to The Independent, the fibres in Coca-Cola Plus could reduce the body’s absorption of dietary fat. The drink could also control the level of triglycerides found in the blood after eating. Innovations like this are how Coca-Cola is able to continually reinvent itself to tap into new markets, riding the wave of changing consumer tastes.
Coca Cola is still one of the most consumed soft drinks in the world, but if public opinion concerning dietary sugar and childhood obesity continues to strengthen in the years ahead, products like Coca-Cola Life and Coca-Cola Plus will inevitably play a bigger part in the company’s strategy.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.