Beverage giant Coca Cola announced its third quarter financial results on October 30 with the company reporting a 9% decline in net revenue to Sh836 billion as compared to a similar financial period last year.
Coca Cola said the plunge during the financial period between July and September was due to a refranchising model of North American bottling operations, a process that has taken a decade to implement.
Beyond the profit decline, the non-a*******c beverage maker and distributor posted a unit case volume increment of 2% that was led by the Coca Cola trademark.
Coca Cola however also posted a 7% cash from operations decline to Ksh560 billion, with a year on year 2% free cash flow drop to Ksh469 billion.
President and chief executive of Coca Cola James Quincey said, ““We continue to be encouraged by our performance year-to-date as we accelerate our evolution…”
During the same quarter, the company announced the expected acquisition of Costa Limited, which according to Coca Cola will provide the capabilities to build a global coffee platform. “Costa will also give the company strong expertise across the coffee supply chain, including sourcing, vending and distribution, which will complement and leverage existing capabilities within the Coca-Cola system.”
The acquisition is expected to close in the first half of 2019, Coca Cola said.
Alongside the expected acquisition of Costa Coffee, the company also announced a strategic relationship with American beverage trademark Bodyarmor as well as Australia’s Mojo and France’s fruit-flavored beverages, Tropico.
— The Coca-Cola Co. (@CocaColaCo) October 30, 2018
Coca Cola also recently announced changes in top leadership, including the election of Mr. Brian Smith as president and chief operating officer (COO) who will report to the firm’s CEO, Mr. Quincey.
Meanwhile, Mr. John Murphy, who currently serves as president of the company’s Asia Pacific group, will become senior vice president and deputy CFO on January 1, 2019. He will be elevated to executive vice president and CFO on March 16, 2019, following the retirement of Ms. Kathy Waller.
The company also announced that Ms. Nancy Quan has been elected senior vice president and appointed Chief Technical Officer, reporting to Mr. Quincey.
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