The Coca-Cola Company is a giant beverage company that owns over 500 nonalcoholic soft drink brands such as Diet Coke, Fanta, Coca-Cola and Sprite. The corporation strives to develop and accelerate its growth in order to create value for its shareowners and all the beverage distribution system consisting of independent bottling partners, wholesalers, retailers and distributors is designed to meet customers’ needs, lifestyles and desires. All profits are created to benefit world shareholders through dividend payments and key objectives to achieve this goal are expanding share of beverage sales, increasing volume of sold production and maximizing cash flows improving overall economic profit and economic value added. Hoc meetings and investor conferences are annually held to manage interaction between shareholders, institutional investors, financial journalists and others.
The main shareholders of the corporation are the Coca-Cola Company with 23.1 % of the shares and Kar Tess Holding (Luxembourg) with 23.2%. As for financial disclosures indicating Company’s success in achieving of the target objective, integrate annual report shows that in 2015, “the share capital of Coca-Cola HBC increased by the issue of 322.050 new ordinary shares” (Refreshing business: 2015 Integrate Annual Report, 2015, p. 196). Such an expanding of worldwide shares of the Company leads to the strengthening and increasing of shareowners’ wealth. Another evidence of success in this respect is that total proceeds taken from the insurance for the shares amounted up to €5.1 million. Finally, compared to 2014 with dividend payment 0.36 Euro per share, there has been a progressive development of dividend policy within the Group and in 2015, the Board of Directors has suggested 0.40 Euro dividend per share (Refreshing business: 2015 Integrate Annual Report, 2015, p.196). Thus, there has been a significant improvement in the dividend policy recently.
As for the limitations performed in the financial disclosures, they are conditioned by different state of economic operations in various countries of the world. For example, there has been a deconsolidation of Brazilian bottling operation in 2013 and the Company consistently strives for the equity method of accounting worldwide (United States Securities and Exchange Commission, 2013, p. 71). Another negative factor is growth of the long-term debt which can reach up to 30 % (2013) due to the issuance of long-term debt of early retirements and others reasons. The Coca-Cola Company provides a number of new strategies and approaches to overcome such limitations and obstacles for successful growth of the shared value. I agree with the company’s mission and methods of its achievement trusting basic financial evidence and given statistical data.
References
Refreshing business: 2015 Integrate Annual Report. (2015). Coca-Cola HBC. Retrieved from
http://coca-colahellenic.com/media/2390/coca-cola-hbc_2015-integrated-annual-report.pdf
United States Securities and Exchange Commission. (2013). The Coca Cola Company:
Delaware. Retrieved from http://www.coca-colacompany.com/annual-review/2013/img/2013-annual-report-on-form-10-k.pdf
