Q2 2023 results announced today.
Global unit case volume was flat
Net revenues grew 6%; Organic revenues (non-GAAP) grew 11%
Operating income grew 3%; Comparable currency neutral operating income (non-GAAP) grew 15%
Operating margin was 20.1% compared to 20.7% in the previous year; Comparable operating margin (non-GAAP) was 31.6% compared to 30.7% in the previous year
EPS grew 34% to $0.59; Comparable EPS (non-GAAP) grew 11% to $0.78
Itâs quiet in the group, but can anyone say why Coca and Pepsi are slumping today? I canât find any major news myself right now.
I wonât take a stand on yesterdayâs stock price drop, which affected not only Coke and Pepsi but also other âsugar merchantsâ like Keurig Dr. Pepper and Mondelez, but one topic that hasnât been mentioned in this thread is the impact of new appetite-suppressant drugs (Ozempic/Wegovy and their upcoming competitors) on these types of companies.
Bloomberg news reported yesterday that Walmart had noticed that those buying these drugs from Walmartâs pharmacy were purchasing less food. Currently, these drugs are not mainstream, especially globally (with prices at $1000+/month), but if they become more widespread, there will certainly be an impact on food companies.
In my view as well, the reasons behind the share price declines of soft drink companies are a combination of the emphasis on healthier lifestyles, rising interest rates lowering acceptable valuation levels, weakening consumer purchasing power, and rising raw material costs. There is a fear leading up to the earnings season that operating profits will fall, at least momentarily. However, changes in peopleâs lifestyles are ultimately quite slow-moving; for example, there are still more smokers than one would expect given the price of a pack. For this reason, as a long-term owner, I wouldnât be worried in the medium term just yet.
Most likely exactly like that. Iâm wondering if there are any changes coming to U.S. confectionery taxation that I havenât seen in the news?
ppalehti.fi/uutiset/coca-cola-on-tasaisen-varma-tuloskone-osinkokuninkaan-arvostus-on-historiaan-nahden-alhainen/2f61ae1f-63fc-4227-b766-afc3be09f8d6`
Itâs definitely a URL.
Okay, I will return the URL.
*Refining*: Is there any other way to interpret "Pres
Aspartaami nousemassa karsinogeenisten aineiden listoille.
The International Agency for Research on Cancer is expected to add aspartame to its list of possibly carcinogenic agents this month.
Coke Zero, Diet Coke, and numerous other beverages in Coca-Colaâs portfolio contain aspartame.
This last one, then, is the âpossibly carcinogenicâ group â and the one aspartame would presumably be assigned to, for now. There are more than 300 agents in this category today, compared to 120-plus cancer-causing agents that the IARC has placed in Group 1 and 90-plus agents in Group 2A.
In short, researchers have not gathered sufficient evidence to show that aspartame definitely causes cancer.
After Pepsi, it wasnât hard to guess that there would hardly be a disaster. The stock is up a good 2.5 percent in pre-market.
(I have built up a small starter position for myself on the dip. I plan to use this exact stock to spark the kidsâ interest in the topic of âwhat is investing,â and my 7-year-old daughter seemed to immediately jump for joy when I told her that we own a bit of Coca-Cola. It seems like a promising stock for educational purposes.)
KO has a new AI-developed flavor, Y3000, which received praise in the earnings call. If a high-quality bulk business like this can leverage AI in this way, we in the Nordics could certainly use a bit more imagination (where are Olviâs AI drinks? Where are Keskoâs AI bananas? Would Lehto have built better with AI? Would AI tires be high quality at Tyres?)
Okay, thatâs mostly just good advertising from KO 
âEarnings call: Coca-Cola reports strong Q3 2023 results, announces AI-driven initiativesâ
This tweet thread takes a little while to read.
The thread is about Roberto Goizueta, who served as the Chairman and CEO of Coca-Cola from 1980 until 1997, when he died.
https://twitter.com/IrrationalMrkts/status/1723385869346726329
And Coca-Colaâs results are out.
Key highlights:
âGlobal Unit Case Volume Grew 2% for the Quarter and 2% for the Full Year
Net Revenues Grew 7% for the Quarter and 6% for the Full Year;
Organic Revenues (Non-GAAP) Grew 12% for the Quarter and 12% for the Full Year
Operating Income Grew 10% for the Quarter and 4% for the Full Year;
Comparable Currency Neutral Operating Income (Non-GAAP) Grew 20% for the Quarter and
16% for the Full Year
Fourth Quarter EPS Declined 2% to $0.46; Comparable EPS (Non-GAAP) Grew 10% to $0.49;
Full Year EPS Grew 13% to $2.47; Comparable EPS (Non-GAAP) Grew 8% to $2.69
Cash Flow from Operations Was $11.6 Billion for the Full Year, Up 5%;
Full-Year Free Cash Flow (Non-GAAP) Was $9.7 Billion for the Full Year, Up 2%â
The dividend rose 5.4% to 48.5 cents. Works for me 
"The Board of Directors of The Coca-Cola Company today approved the companyâs 62nd consecutive annual dividend increase, raising the quarterly dividend approximately 5.4% from 46 cents to 48.5 cents per common share.
The quarterly dividend is equivalent to an annual dividend of $1.94 per share, up from $1.84 per share in 2023. The first quarter dividend is payable April 1 to shareowners of record as of March 15."
https://investors.coca-colacompany.com/news-events/press-releases/detail/1102/board-of-directors-of-the-coca-cola-company-approves-62nd
Teemu Liila and @Heikki_Keskivali talked about Coca-Cola and Pepsi.
Did you know that Pepsi has gone bankrupt twice in the past? In this weekâs episode, itâs Coca-Cola versus Pepsi. Which one tastes better and which one is chosen for the portfolio?
Topics:
00:00 Intro 01:45 Blind taste test: Pepsi and Coca-Cola 06:16 Pepsi and Coca-Cola comparison 08:49 Business and outlook 21:32 Valuation now 26:30 Which one to buy?
Coca-Cola grew its comparable EPS impressively despite significant currency headwinds. Decent growth nonetheless.
"âą Earnings per share: EPS declined 5% to $0.56, while comparable EPS (non-GAAP) grew 7% to $0.84. EPS
performance included the impact of an 11-point currency headwind, while comparable EPS (non-GAAP)
performance included the impact of a 10-point currency headwind. "
A strong company that still has an excellent ability to adapt to market changes. 
Here is a brief tweet about Coca-Cola.
Coca-Cola and Pepsi are compared in the tweet below.
If I remember correctly, Pepsi reports its results tomorrow.
Coca Cola released Q3 results. Significant headwinds from currencies.
Comparable EPS grew 5% to $0.77.
Global Unit Case Volume Declined 1%
Net Revenues Declined 1%;
Organic Revenues (Non-GAAP) Grew 9%
Operating Income Declined 23%;
Comparable Currency Neutral Operating Income (Non-GAAP) Grew 14%
Operating Margin Was 21.2% Versus 27.4% in the Prior Year;
Comparable Operating Margin (Non-GAAP) Was 30.7% Versus 29.7% in the Prior Year
EPS Declined 7% to $0.66; Comparable EPS (Non-GAAP) Grew 5% to $0.77
Coca-Colaâs stock history is also quite impressive. 
https://x.com/dividendology/status/1852749510247841920
Here is a good tweet thread about the company as a reminder of, for example, where the company gets its money.
https://x.com/a_vroenne/status/1851245218613395578
