ATLANTA – Coca-Cola today reported third quarter 2017 operating results and reaffirmed its full-year financial outlook. We asked President and CEO James Quincey for more perspective on results from the quarter and the year, to date.
Coca-Cola reported that net revenues were down 15%, while organic revenues were up 4%. What’s driving this difference?
We’re pleased with our performance this quarter, so let me explain this difference. For a number of quarters, our reported revenues have fallen, largely because of refranchising. Refranchising means that we’ve been selling company-owned bottling operations around the world to strong, independent local partners. This returns Coca-Cola to its historic role as a franchise leader rather than a franchise owner. As this happens, revenue from refranchised bottling operations is no longer included in the consolidated results of the company, as we no longer own these assets.