Indian operations contribute to Coca Cola Q2 2003 growth

ATLANTA: The Coca-Cola Company reported second quarter (2Q 2003) earnings per share of $0.55, a 12 percent increase from the prior year second quarter earnings of $0.49 per share. The current quarter results include a reduction of $0.02 per share related to the previously announced streamlining initiatives. The worldwide unit case volume grew five per cent in the second quarter.

A press release says that strong results during the first six months were driven by growth in Australia, the Philippines, India and Thailand.

A medianet press release says that the results in the quarter were driven by two per cent carbonated soft drink growth and nearly 20 per cent growth in noncarbonated beverages. Year-to-date unit case growth reflects an increase of five per cent in international operations and three per cent in North America.

Coca Cola chairman and CEO Doug Daft was quoted as saying: "Given our emphasis on profitable growth and cash flow generation throughout our business, we are encouraged by the results we have generated in the current global operating environment." The cash from operations for the first six months was $2.1 billion; compared to $2.2 billion in the prior year period. However, the release says that the company expects strong cash flows to continue in the future.

The release says that the company continues to concentrate on maximising value for customers and the entire Coca-Cola system based on a balanced approach to volume and pricing through the execution of brand, package and channel strategies on a country-by-country basis.

Highlights of Coca Cola's Asian operations:

The unit case volume increased four per cent for the second quarter of 2003, cycling 14 per cent growth in the prior year second quarter. For the first six months, unit case volume increased six per cent, cycling 12 percent growth during the prior year period.

The release says that strong results during the first six months were driven by growth in Australia, the Philippines, India and Thailand. Core carbonated soft drinks continued to drive growth across Asia, particularly in single-serve packages, along with strong performance of local brands such as Thums Up, Qoo and Kinley.

Growth trends in the region during the second quarter were affected by the SARS virus in China, Hong Kong, Taiwan and Singapore. The company estimates that SARS reduced the region’s unit case growth rate by approximately three percentage points during the quarter.

However, these trends did not significantly impact the profit for the group due to measures taken early in the quarter to redirect resources and postpone investments until consumer confidence returned.

In China, unit case volume declined approximately two percent during the second quarter, and increased nine percent during the first six months of the year. The company has seen encouraging signs that the worst impact on its business from the SARS virus is now over.

Further, the release states that the company remains focused on efficiency drivers and supply chain management projects that will generate additional resources for investments in growth-driving and brand-building initiatives.

Latest Reads
Multi-media ad campaign to popularise gold coin

A year after it was first launched, a multimedia advertising campaign is being launched to drive awareness around Diwali on the availability of the Indian gold coin by the Mines and Minerals Trading Corporation along with World Gold Council. Being launched this week, the campaign will cover...

MAM Media and Advertising Ad Campaigns
Vizeum launches Binary, special advisory unit for media clients

“Media business is, in the short term, headed for a tipping point, driven by the changing consumer-media interface,” emphasises Vizeum India MD Shripad Kulkarni, who strongly believes that media companies need a definitive transformation strategy in place now.

MAM Media and Advertising Media Agencies
Havas Media bags Rs 15-cr Sujata account

MUMBAI: Havas Media Group India has bagged the integrated media duties of Sujata, an Indian Consumer Electronics & Home Appliances brand for Juicer Mixer Grinders. The incumbent on the business was Exposure Media. The account will be handled out of Gurgaon office led by Uday Mohan. The...

MAM Media and Advertising Account
TV festive ad spend to reach Rs 8000 cr; experts divided

MUMBAI: The festive months of October and November are welcome months not just for you and your family, but for most Indian brands as well. After all, they eagerly wait for this early window when consumers loosen up their purse strings and put their Diwali bonuses to good use, aka, shopping.

MAM Marketing MAM
Amagi partners with BARC India to offer monitoring of geo-targeted TV ad-campaigns

Amagi Media Labs has entered into a partnership agreement with India’s apex television viewership monitoring body BARC India to help advertisers monitor geo-targeted ad-campaigns of brands across TV channels.

MAM Media and Advertising AD Agencies
iProspect conceptualises unique digital video for ICICI two-wheeler insurance

iProspect India has conceptualized and executed a unique digital video for ICICI Lombard General Insurance in their latest campaign on two-wheeler insurance.

MAM Media and Advertising AD Agencies
eBay engages consumer with live game on FB

MUMBAI: Festive season is a busy time for Indian brands, especially the e-commerce players given the shopping spree the nation witnessed around the time. Thus it becomes important to brainstorm on new and unique ways to get the consumer’s attention; something different from the unbelievable...

MAM Media and Advertising Ad Campaigns
Culture Machine & Quaker Oats aim to feed kids

As the festive mood gathers spirit in the country, Culture Machine’s digital channel Being Indian, in collaboration with Quaker Oats, have released a new campaign. Titled "Ek Muthi Sonu ke Naam", the video urges people to pause and spare a thought to the millions of children who go hungry.

MAM Media and Advertising Ad Campaigns
BTVi unveils new brand positioning

BTVi has unveiled its new positioning, #OpinionsThatCount, aimed at impacting the opinions of the influencers. With this, BTVi will be the voice and choice of the influential. An integrated campaign will be launched primarily catering to influencers, key decision makers and opinion makers.

MAM Media and Advertising People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories