The Coca-Cola Company (NYSE:KO) - The Nobility of Aristocrats

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Decent result. I guess the dividend will rise again this year

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There’s no thread for Pepsi, but it would probably fit in the same one due to the limited discussion.

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That seems to be going down now that they’ve messed with the regular Pepsi recipe, at least in some parts of Europe. It has all sorts of sweeteners in it. Not a good thing. There hasn’t been any news about it anywhere, though.
I’m in a difficult position because I don’t want to be involved with it, but I don’t really know how to sell it either.

I don’t know if it’s a coincidence, but Coca-Cola’s stock chart almost mirrors the SP500’s chart from the early 1990s. Is Coke almost the same as investing in the entire S&P 500? :smiley:

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I hadn’t noticed there’s a Coca-Cola thread here.

If anyone’s interested, Coca-Cola has some kind of letter of intent with Opticept and is considering adopting their technology for green tea extraction.

Green tea is a popular drink in the US, for example, and in many warm countries in general. With Opticept’s technology, they aim to accelerate the extraction process from 24 hours to a 1-hour process. Additionally, this technology allows tea to be extracted at lower temperatures, preserving the tea’s healthy ingredients, and one could imagine the process using less energy. I note that energy savings have not yet been promised at this evaluation stage.

I haven’t read in more detail how dramatically this would affect Coca-Cola’s cash flows and if they might have other applications for this, should the technology prove useful for green tea.

Opticept is a Swedish university spin-off company that is also worth checking out. I don’t own the company myself, but my favorite chef has been involved for a good while.

Probably no need to explain in more detail:
Faster process at lower temperatures —> more efficient production —-> more money left on the bottom line

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HS article. (may be behind a paywall)

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Coca-Cola’s Q1 results today.

Revenue increased by 16 percent to $10.5 billion. Analysts expected revenue of $9.83 billion, according to Refinitiv consensus. Coca-Cola’s adjusted earnings per share for the first quarter were $0.64. The analyst consensus expected $0.58.

The company reiterated its full-year guidance, forecasting revenue growth of 7–8 percent and comparable earnings per share growth of 5–6 percent.

In an interview with CNBC, CEO James Quincey noted storm clouds on the horizon, despite navigating inflation challenges in the first quarter.

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What are the thoughts here on Coke at the moment? It’s gradually becoming the largest holding in my portfolio. And will they raise the dividend for the 61st time this year? I think the info comes out on Feb 14th?

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Hi.

I also have a fairly large slice of Coke. It’s hard to say about the valuation at the moment; I’m holding my shares for the long term, and my biggest purchases were made during the Covid dip.

If we set aside sugary drinks and focus on bottled water, for example, the consumption of packaged water grows by about 6-8% annually, and KO is the market’s number two after NestlĂ©. That megatrend is unlikely to turn downwards anytime soon. They also make acquisitions at a steady pace (e.g., the Costa coffee chain) and aim to broaden their business extensively.

Regarding the dividend, I believe they want to hold onto the growing dividend tooth and nail, so I’m feeling confident :slight_smile:

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Anyone know when the earnings report is coming out?

It’s next week, on Feb 16.

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The interim report will be released on Feb 14 at 3:30 PM (Finnish time).

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Here is a link to the results as well. I thought I read elsewhere that the dividend would be $0.44 per quarter, but the decision will probably be finalized soon and I couldn’t find a source for this. It would be strange, of course, if they didn’t raise it to $0.45. Guidance for next year is for 3-5% revenue growth and a slight “softening of demand” in Europe. China, however, should be rocking by Q4/22, pretty much in line with expectations.

https://www.cnbc.com/2023/02/14/coca-cola-ko-q4-earnings.html?__source=androidappshare&fbclid=IwAR3I-ac2RFkOqMBPgRBNOucOwNYSDhZrZtByfdqackFxM-3lbXD_lHUDBc0

The dividend increase did indeed come through as expected: 0.46 per quarter and a 4.6% percentage increase :grinning:
https://finance.yahoo.com/news/coca-cola-company-announces-nomination-175300331.html

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Doing reasonably well, a strong brand is able to raise prices and increase unit sales at the same time.

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This doesn’t really affect the company’s operations much, but from a Finnish perspective, it’s quite an interesting piece of news.

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Somewhat lazily written news article. I think a large part of the readers will get HBC and the company mixed up, as it hasn’t been explained any further. :thinking: