coca cola presentation[1]
Post on 10-Nov-2014
6.368 Views
Preview:
DESCRIPTION
TRANSCRIPT
Coca Cola by,
Robin ToalBrock VestrumLeanna Privette
April Vassau
AgendaCompany OverviewIndustry & Competitors OverviewRatiosFuture StrategyRecommendation
Company OverviewHistory • 1886: John Pemberton, an Atlanta
pharmacist, stirred up a fragrant, caramel-colored liquid and carried it a few doors down to Jacobs' Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed -- this new drink was something special. So Jacobs' Pharmacy put it on sale for five cents a glass.
• 1920-1960s: Coke was introduced overseas and became a partner of the Olympic games. By the time WWII was over, Coke doubled their bottling plants across the country and overseas.
Company Overview:History • 1960-1989: Coke adds new flavors to their
offerings such as Sprite, Minute Maid Juice, and Fantana. In 1982 Diet Coke was rolled out to a new health conscience audience and within 2 years became the top diet soft drink in the world.
• 1990s: A decade of consistent growth with the introduction of new products such as Powerade and Dasani bottled water.
• 2000-Now: 1.4 billion beverages are sold each day. Coke continues to look to delight its customers who reach for one of their products by focusing on what the demand is within local communities.
Coca Cola Brands
Industry OverviewNon alcoholic beverages represent 60% of
the beverage industrySoft drinks, fruit juices, bottled water, milk,
sports drinks, ready-to-drink tea & coffeeLeaders in this segment are Coca Cola &
Pepsi, which together hold over 50% of the market
The beverage industry is highly competitive on pricing, packaging, marketing, and developing new products which leads to pressures from shareholders to expand portfolio of brands
Industry Analysis – Share Price
Q1
08
Q2
08
Q3
08
Q4
08
Q1
09
Q2
09
Q3
09
Q4
09
Q1
10
7/16
/201
0$10
$20
$30
$40
$50
$60
$70
$80
Coca ColaPepsicoDPS
Pri
ce
Time
Competitors (Ticker)
MAIN COMPETITORSPepsico (PEP)Dr Pepper Snapple Group (DPS)2ND TIER COMPETITORSNational Beverage (FIZZ)Jones Soda (JSDA)Nestle (NESN)Kraft Foods (KFT)
Coke vs. Pepsi
Coke vs. Pepsi
Glob al Footprint Coffee & TeaSocial MediaKeeping an eye on DPS
Tests of Profitability
0.00
0.05
0.10
0.15
0.20
0.25
0.30
2009 2008
EBIT Margin
Coke
Pepsi
2009 2008
Return on Equity 28% 28%
Return on Assets 15% 15%
Financial Leverage % 13% 13%
Earnings Per Share 2.93$ 2.49$
Quality of Income 1.20 1.30
Profit Margin 22% 18%
Fixed Asset Turnover 3.24 3.84
*EBIT Margin 27% 26%
Test of Profitability
0%5%
10%15%20%25%30%35%40%45%
Coke Pepsi Industry
Return on Equity
Coke
Pepsi
Industry
Tests of Liquidity
0.00
0.50
1.00
1.50
2.00
2009 2008
Current Ratio
Coke
Pepsi
0123456789
2009 2008
Inventory TurnOver
Coke Pepsi
2009 2008
Cash Ratio 0.51 0.36
Current Ratio 1.28 0.94
Quick Ratio 0.94 0.60
Receivable Turnover Ratio 9.05 9.97
Average Age of Receivables 40.33 36.60
Inventory Turnover Ratio 4.88 5.16
Average Days' Supply Inventory 74.73 70.71
Test of Liquidity
Tests of Solvency
2009 2008
Times Interest Earned 25.2 18.9
Cash Coverage Ratio 23.66$ 16.46$
Debt-to-Equity Ratio 1.20 1.40
Test of Solvency
0.00
0.50
1.00
1.50
2.00
2.50
2009 2008
Debt-to-Equity Ratio
Coke
Pepsi
Market Test
0.0% 1.0% 2.0% 3.0% 4.0%
2007
2008
2009
Dividend Yield
Pepsi
Coke
Coke PepsiCurrent P/E Ratio 17.3 16.15 Year High 26.3 27.45 Year Low 12.8 14.7
Dividend Yield Dividend Yield
2009 1.64$ 3.1% 1.78$ 2.9%2008 1.52$ 3.0% 1.65$ 3.1%2007 1.36$ 2.5% 1.43$ 1.9%2006 1.24$ 2.8% 1.16$ 1.9%
Test of Solvency
Coke Pepsi
Price / Earnings Ratio
Dividend Yield Ratio15
15.5
16
16.5
17
17.5
18
Coke Pepsi Industry
Price / Earnings Ratio
Coke
Pepsi
Industry
Future StrategyCoca-Cola’s 2020 Vision, the 6 P’s:Profit: More than double system revenue by 2020 while
increasing system marginsPeople: Be a great place to workPortfolio: More than double servings to over three billion a
day by 2020 and be #1 in the nonalcoholic ready-to-drink business in every market and every category that is of value
Partners: Be the most preferred and trusted beverage partner Planet: Be the global leader in sustainable water use and
industry leadership in packaging, energy and climate protection
Productivity: Manage people, time and money for the greatest effectiveness
SWOT AnalysisStrengths:
Leading market presence, built on strong brand Robust manufacturing and distribution capabilities Strong global footprint
Weaknesses: Destocking of products as the consumer preference shifts to
value brand productsOpportunities:
Growing per capita consumption in developing economies Acquisitions of major North American bottler Growing Non-Alcoholic ready-to-drink beverage industry.
Threats: Evolving consumer preferences Water scarcity and poor quality would impact production costs
and capacity
Recommendations
BUY!
top related