The Coca‑Cola Company Reports First Quarter 2014 Results

Volume and value share gains in nonalcoholic ready-to-drink beverages

2% global volume growth with 2% global price/mix

First Quarter 2014 Highlights

- Global unit case volume grew 2%. Coca‑Cola International volume grew 2% while North America’s volume was even.

- Reported net revenues declined 4%. Excluding the impact of structural changes, comparable currency neutral net revenues grew 2%.

- Reported operating income declined 1%. Excluding the impact of structural changes, comparable currency neutral operating income grew 7% while we accelerated investments behind our brands.

- Reported EPS was $0.36, down 6%, and comparable EPS was $0.44, down 4%. Comparable currency neutral EPS increased 5%.

- Gained both global volume and value share in nonalcoholic ready-to-drink beverages, with value share gains ahead of volume share gains.

- As part of the expansion of our productivity and reinvestment program announced in February, we are on track to invest an incremental $400 million in 2014 media initiatives in order to accelerate top-line growth.

- Cash from operations was $1.1 billion.

NOTES

- All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period.

- “Concentrate sales” represents the amount of concentrates, syrups, beverage bases and powders sold by, or used in finished beverages sold by, the Company to its bottling partners or other customers.

- “Sparkling beverages” means NARTD beverages with carbonation, including energy drinks and carbonated waters and flavored waters.

- “Still beverages” means nonalcoholic beverages without carbonation, including noncarbonated waters, flavored waters and enhanced waters, juices and juice drinks, teas, coffees, sports drinks and noncarbonated energy drinks.

- All references to volume and volume percentage changes indicate unit case volume, unless otherwise noted. All volume percentage changes are computed based on average daily sales, unless otherwise noted. “Unit case” means a unit of measurement equal to 24 eight-ounce servings of finished beverage. “Unit case volume” means the number of unit cases (or unit case equivalents) of Company beverages directly or indirectly sold by the Company and its bottling partners to customers.

- First quarter 2014 financial results were impacted by one less selling day, and fourth quarter 2014 financial results will be impacted by one additional selling day. Unit case volume results for the quarters are not impacted by the variance in selling days due to the average daily sales computation referenced above.

- As previously announced, effective Jan. 1, 2014, the Company renamed our Pacific operating segment the Asia Pacific operating segment.

- The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). However, management believes that certain non-GAAP financial measures provide users with additional meaningful financial information that should be considered when assessing our ongoing performance. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial information does not represent a comprehensive basis of accounting.