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Revenue and profit double growth

Editor’s note: This article comes from WeChat public account “Snack Food” (ID: foodinc) , author Danlin He.

Last night this morning, The Coca-Cola Company released its fourth quarter and full-year financial results for 2019, followed by an analyst performance meeting.

Snacks learned that at the meeting, James Quincey, the CEO of The Coca-Cola Company, interpreted the performance of the Chinese market in the current quarter, and also talked about the current measures to deal with the epidemic in China. In addition, he mentioned Coca-Cola’s plans for the next phase and the reasons for the relocation of CMO.

Below, Snack Generation will take you to see the officers.

Global value share growth

Financial reports show that Coca-Cola achieved both revenue and profit growth in the fourth quarter and throughout the year. The company’s fourth-quarter net income increased by 16% and annual growth of 9%; organic revenue (non-GAAP) increased by 7% during the quarter and increased by 6% throughout the year; operating revenue increased by 19% during the quarter and increased by 10 throughout the year %; Fourth quarter earnings per share of $ 0.47, an increase of 134%; annual earnings per share of $ 2.07, an increase of 38%; net cash flow for the year was $ 8.4 billion, a 38% increase.

James Quincey, Chairman and CEO of The Coca-Cola Company

Zhan Yijie said at the conference that in 2019, Coca-Cola will continue to implement the strategy of all-type beverage companies. Both the soda and non-soda categories have performed well in the market. In terms of retail value, it has created the largest market in the past decade Share growth. “In 40 of our world’s most important markets, 34 have achieved market share growth. ” He said.

Let ’s focus on the core soda category first.

Coca-Cola pointed out in its financial report that total sales increased by 3% in the fourth quarter and 2% throughout the year. In steamIn the field of water drinks, thanks to the strong growth of China, Brazil and Southeast Asia, soda drinks achieved a 3% sales growth in the fourth quarter ; Benefits from Asia and Europe Market, for the full year of 2019, it has grown by 2%.

Whether it is the fourth quarter or the whole of 2019, the sales growth of soda is mainly driven by Coca-Cola brand products. The company pointed out that through a series of innovative attempts, this year’s Coca-Cola brand retail sales have achieved a 6% increase worldwide. Among them, “Coca-Cola Coffee +” soda has been launched in more than 40 markets around the world, including China; zero-sugar Coca-Cola will maintain double-digit growth in 2019.

Speaking of Coca-Cola’s “growth agenda”, Zhan Yujie said at the meeting that M & A is the driving force of strategy, not the strategy itself. “We have always been very aware of this.” In 2019, Coca-Cola acquired Costa Coffee and subsequently launched Costa ready-to-drink coffee products on the European market. According to Zhan Maojie at the conference, the product has now gained 6 points of share in the ready-to-drink coffee market in Costa’s “home” UK, based on retail value.

“We also accelerated the deployment of the high-end self-service coffee maker Costa Express, with more than 700 units launched in key markets in the fourth quarter alone. We are working closely with bottler partners Cooperation to accelerate investment in coffee platforms in 2020. “He said.

Expansion of distribution in China

Let’s focus on the performance of the Chinese market again.

In the Asia-Pacific market, including China, Coca-Cola’s operating income increased by 6% in the fourth quarter, and it achieved organic revenue growth of 5% in 2019, and won the non-alcoholic beverage market share in the region. Continued growth.

“We added 1.4 million sales outlets across the Asia-Pacific region, focusing on our two largest markets in the region: China and India. < strong> “Zhan Yanjie said at the meeting.

He also said that Coca-Cola ’s success in the Chinese market is not only due to its distribution network