Warren Buffett didn’t expect this: Coca-Cola’s financial results for the first quarter 2020 – Idaho Reporter

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Warren Buffett didn’t expect this: Coca-Cola’s financial results for the first quarter 2020

The Coca-Cola Company (NYSE: KO) an American multinational corporation headquartered in Atlanta today announced in their SEC filling that their Operating Income Declined 2%. Coca-Cola is much more than Coke, the company is offering over 500 brands in 200 countries.

“We sincerely thank those who have been working to keep all of us safe through the crisis, particularly those on the front lines in the healthcare community. I also want to recognize our system associates, who are ensuring we can continue to supply beverages around the world,” said James Quincey, chairman and CEO of The Coca-Cola Company.

It is worth noting that Coca-Cola is Berkshire Hathaway’s third-biggest holding. In 1988 Warren Buffett bought $1B worth of KO shares.

The key takeaways from Q1 2020 results are as follows:


Revenues: Net revenues declined 1% to $8.6 billion. Organic revenues (non-GAAP) were even. Revenue performance included even concentrate sales and even price/mix.

Margin: Operating margin, which included items impacting comparability, was 27.7% versus 28.0% in the prior year, while comparable operating margin (non-GAAP) was 30.7% versus 28.2% in the prior year.

Earnings per share: EPS grew 65% to $0.64, and comparable EPS (non-GAAP) grew 8% to $0.51.

Market share: The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages.


Cash flow: Cash from operations was $556 million, down 29%.


Water, enhanced water and sports drinks grew 2%,

Globally, operating income and comparable currency neutral operating income (non-GAAP) both declined 71%

Once again Mr. Buffett’s bet on big brands is paying off big time.

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