Shares of The Coca-Cola Co (NYSE:KO) ended Thursday session in green amid volatile trading. The shares closed up +0.42 points or 1.01% at $42.96 with 9.29 million shares getting traded. Post opening the session at $42.71, the shares hit an intraday low of $42.69 and an intraday high of $43.01 and the price vacillated in this range throughout the day. The company has a market cap of $186.25 billion and the numbers of outstanding shares have been calculated to be 4.32 billion shares.
oOn August 29, 2016 The Coca-Cola Company and its global bottling partners (the Coca-Cola system) announced they have met their goal to replenish, or in other words balance, the equivalent amount of water used in their global sales volume back to nature and communities. Based on this achievement, Coca-Cola is the first Fortune 500 company to publicly claim achieving such an aggressive water replenishment target.
The Coca-Cola system also announced progress against its water efficiency goal. The company and its bottling partners improved water use efficiency by 2.5 percent from 2014 to 2015, adding to a cumulative 27 percent improvement since 2004.
Based on a global water use assessment validated by LimnoTech and Deloitte, and conducted in association with The Nature Conservancy (TNC), the Coca-Cola system returned an estimated 191.9 billion liters of water to nature and communities in 2015 through community water projects, equaling the equivalent of 115 percent of the water used in Coca-Cola’s beverages last year.
“This achievement marks a moment of pride for Coca-Cola and our partners. A goal that started as aspiration in 2007 is a reality and a global milestone we plan to maintain as our business grows,” said Muhtar Kent, Chairman and CEO, The Coca-Cola Company. “Now, every time a consumer drinks a Coca-Cola product, they can have confidence that our company and bottling partners are committed to responsible water use today and tomorrow. We are keenly aware that our water stewardship work is unfinished and remain focused on exploring next steps to advance our water programs and performance.”
Shares of Ambev SA (ADR) (NYSE:ABEV) ended Thursday session in green amid volatile trading. The shares closed up +0.05 points or 0.83% at $6.09 with 8.55 million shares getting traded. Post opening the session at $6.10, the shares hit an intraday low of $6.07 and an intraday high of $6.16 and the price vacillated in this range throughout the day. The company has a market cap of $94.93 billion and the numbers of outstanding shares have been calculated to be 15.70 billion shares.
Ambev SA (ADR) (ABEV) on July 29, 2016 announced its results for the 2016 second quarter.
Operating and Financial Highlights
Top line performance: Net revenue (NR) was up 3.2% in the quarter, explained by growth in all of our operations (Brazil +1.7%, CAC +19.9%, LAS +2.6% and Canada +1.6%). Volumes were down 6.7% mainly driven by a decline in Brazil and Argentina as economic and political volatility in these countries continued to put pressure on beverage consumption. This decline was more than offset by a solid net revenue per hectoliter (NR/hl) increase of 10.6%, due to our revenue management initiatives and premium mix in most of the countries we operate.
Cost of Goods Sold (COGS): Our COGS increased by 0.6% while, on a per hectoliter basis, the increase was 7.8% mainly driven by inflationary pressures and unfavorable currency movements, partly offset, among other factors, by FX and commodity hedges, the growth of 300ml returnable glass bottles and the benefit of procurement savings.
Selling, General & Administrative (SG&A) expenses: SG&A (excluding depreciation and amortization) was up 7.8%, below our weighted average inflation (around 9.3%), mainly due to efficiency gains in sales & marketing and cost savings in administrative expenses, while distribution expenses grew in line with inflation.
EBITDA, Gross margin and EBITDA margin: Normalized EBITDA reached R$ 4,204.6 million (+1.8%) in 2Q16 with gross margin expansion of 100bps and EBITDA margin compression of 60bps.
Normalized Net Profit and EPS: Normalized Net Profit was R$ 2,194.7 million (-22.4%) in the quarter due to a higher net finance expense mainly driven by (i) higher carry cost of our COGS hedges, (ii) mark to market losses of CAPEX hedges, (iii) a non cash impact driven by accretion expense related to our investment in Dominican Republic (around R$ 150 million in the quarter) and (iv) a non cash impact due to foreign exchange translation losses on intercompany loans (around R$ 90 million in the quarter). Effective tax rate was 9.4% versus 6.1% last year. Normalized EPS was R$ 0.13 in 2Q16.
Operating Cash Generation and CAPEX: In the quarter, cash generated from operations was R$ 2.5 billion while CAPEX reached R$ 1.1 billion. Year to date, we generated R$ 4.7 billion in cash from operations while CAPEX reached R$ 1.8 billion. In Brazil, CAPEX year to date is R$ 930 million.