The Coca-Cola Company (KO) is a leading total beverage company with products in more than 200 countries and territories around the world. The company also operates the world’s largest nonalcoholic beverage distribution system through its network of independent bottlers, distributors, wholesalers, and retailers, as well as its consolidated operations.
The company generated nearly 35% of its revenue from North America, 19% from Bottling Investments, almost 17% from Europe, Middle East, and Africa, 13% from Asia-Pacific, 11% from Latin America, and the remaining from its Global Ventures in 2020.
Mixed Earnings as IRS Risk Remains
Coca-Cola reported fourth quarter revenue that fell 5.5% to $8.6 billion, missing consensus estimates by $20 million, although non-GAAP earnings came in at 47 cents per share, beating consensus estimates by five cents. Cash from operations fell 6% to $9.8 billion, driven by COVID-19 pressure and currency headwinds.
After a few years of slowing volume growth, many analysts believe that the company is well-positioned over the long run with refranchising and bolt-on M&A. The big question mark for investors is an IRS ruling that could result in a $12 billion total liability, as well as a 3.5% increase in the company’s underlying tax rate if it’s upheld.
The company raised its quarterly dividend by 2.4% to $0.42 per share, which represents a 3.25% forward yield. The dividend is payable on April 1, 2021 to shareholders on record as of March 15, 2021.
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