4. Introduction
Coca-Cola was
founed in 1886 by Dr.
John S Pemberton
The history of the
world’s favourite drink
5. Introduction
Strong leaders in the high profitable soft
drink/beverage industry.
Coca-Cola owns the best known
worldwide, whereas Pepsico also has
great brand-name recognition.
7. Coca-Cola Common-size Statement of Income
Coca-cola Enterprises Inc.
Period Ending 31-Dec-13 31-Dec-12 31-Dec-11
Total Revenue 46,854,000 48,017,000 46,542,000
Cost of Revenue 18,421,000 19,053,000 18,215,000
Gross Profit 28,433,000 28,964,000 28,327,000
Operating Expenses
Research Development - - -
Selling General and Administrative 17,372,000 17,738,000 17,422,000
Non Recurring - - -
Others 18,000 30,000 732,000
Total Operating Expenses 36,265,000 37,238,000 36,369,000
Operating Income or Loss 10,589,000 10,779,000 10,173,000
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax 11,477,000 11,809,000 11,458,000
Income Tax Expense 8,626,000 9,068,000 8,646,000
Minority Interest - 42,000 - 67,000 - 62,000
Net Income From Continuing Ops 8,584,000 9,019,000 8,584,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 8,584,000 9,019,000 8,584,000
8. Pepsi common-szie Statement of Income
Period Ending 28-Dec-13 29-Dec-12 31-Dec-11
Total Revenue 66,415,000 65,492,000 66,504,000
Cost of Revenue 31,243,000 31,291,000 31,593,000
Gross Profit 35,172,000 34,201,000 34,911,000
Operating Expenses
Research Development - - -
Selling General and Administrative 25,357,000 24,970,000 25,145,000
Non Recurring - - -
Others 110,000 119,000 133,000
Total Operating Expenses 56,710,000 56,380,000 56,871,000
Operating Income or Loss 9,705,000 9,112,000 9,633,000
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax 8,891,000 8,304,000 8,834,000
Income Tax Expense 2,104,000 2,090,000 2,372,000
Minority Interest - 47,000 - 36,000 - 19,000
Net Income From Continuing Ops 6,740,000 6,178,000 6,433,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 6,740,000 6,178,000 6,443,000
9. Coca-Cola Common-size Balance Sheet
Period Ending 2013 2012 Change % 2011
Cash and Cash Equivalents 10,414,000 8,442,000 1,972,000 23% 12,803,000
Short Term Investments 9,854,000 8,109,000 1745000 22% 1,232,000
Net Receivable 4,873,000 4,759,000 114000 2% 4,920,000
Inventory 3,277,000 3,264,000 13000 0% 3,092,000
Other Current Assets 486,000 3,470,000 -2984000 -86% 487,000
Total Current Assets 31,304,000 30,328,000 976000 3% 25,497,000
Long Term Investments 11,512,000 10,448,000 1064000 10% 8,374,000
Property Plant and Equipment 25,032,000 23,486,000 1546000 7% 23,151,000
Goodwill 12,312,000 12,255,000 57000 0% 12,219,000
Intangible Assets 15,299,000 15,082 15283918 15,450,000
Total Assets 90,055,000 86,174,000 3881000 5% 79,974,000
Account Payable 1,933,000 1,844,000 89000 5% 1,966,000
Short Current Long Term Debt 111000 632000 -521000 -82% 16000
Total Current Liabilities 2195000 2579000 -384000 -15% 1848000
Long Term Debt 3726000 2834000 892000 31% 2996000
Other Liabilities 221000 2760000 -2539000 -92% 160000
Deferred Long Term 1103000 1128000 -25000 -2% 1191000
Total Liabilities 7245000 6817000 428000 6% 6195000
Common Stock 3000 3000 0 0% 3000
Retained Earnings 1577000 1126000 451000 40% 638000
Treasury Stock 2868000 1831000 1037000 57% 1014000
Capital Surplus 3899000 3825000 74000 2% 3745000
Other Stockholders' Equity 331000 430000 -99000 -23% 473000
Total Stockholders' Equity 2280000 2693000 -413000 -15% 2899000
Net Tangible Assets 1848000 1362000 486000 36% 996000
10. PEPSICO Common-size Balance Sheet
Period Ending 2013 2012 Change % 2011
Cash and Cash Equivalents 9375000 6297000 3078000 49% 4067000
Short Term Investment 303000 322000 -19000 -6% 358000
Net Receivable 6954000 7041000 -87000 -1% 6912000
Inventory 3409000 3581000 -172000 -5% 3827000
Other Current Assets 2162000 1479000 683000 46% 2277000
Total Current Assets 22203000 18720000 3483000 19% 17441000
Long Term Investment 1841000 1633000 208000 13% 1477000
Property Plant and Equipment 18575000 19136000 -561000 -3% 19698000
Goodwill 16613000 16971000 -358000 -2% 16800000
Tangible Assets 16039000 16525000 -486000 -3% 16445000
Others Assets 2207000 1653000 554000 34% 1021000
Total Assets 77478000 74638000 2840000 4% 72882000
Account Payable 12533000 12274000 259000 2% 11949000
Short Current Long Term Debt 5306000 4815000 491000 10% 6205000
Total Current Liabilities 17839000 17089000 750000 4% 18154000
Long Term Debt 24333000 23544000 789000 3% 20568000
Other Liabilities 4931000 6543000 -1612000 -25% 8266000
Deferred Long Term Liabilities Charges 5986000 5063000 923000 18% 4995000
Minority Interest 110000 105000 5000 5% 311000
Total Liabilities 53199000 52344000 855000 2% 52294000
Misc Stock Options Warrants 130000 123000 7000 6% 116000
Common Stock 25000 26000 -1000 -4% 26000
Retained Earnings 46420000 43158000 3262000 8% 40316000
Treasury Stock 21004000 19458000 1546000 8% -
Capital Surplus 4095000 4178000 -83000 -2% 4461000
Other Stockholders' Equity 5127000 5478000 -351000 -6% 24099000
Total Stockholders' Equity 24409000 22417000 1992000 9% 20704000
Net Tangible Assets 8243000 11079000 -2836000 -26% 12541000
11. Coca-Cola Common-size Cash Flow
2,013 2,012 2,011
Net income 8,626 9,086 8,646
Depreciation 1,977 1,982 1,954
Deferred Taxes 648 632 1,035
Non-cash items 223 25 -268
Change in working capital -932 -1,080 -1,893
Cash from operating activities 10,542 10,645 9,474
Capital Expenditure -2,550 -2,780 -2,920
Other investing cash flow items -1,664 -8,624 396
Cash from investing activities -4,214 -11,404 -2,524
Financing cash flow items 17 100 45
Total cash dividends paids -4,969 -4,595 -4,300
Cash from financing activities -3,745 -3,347 -2,234
Foreign exchange effects -611 -255 -430
Net change in cash 1,972 -4,361 4,286
12. PEPSICO Common-size Cash Flow
2013 2012 2011
Net income 6,787 6,214 6,462
Depreciation 2,663 2,689 2,737
Deferred Taxes -1,058 321 495
Non-cash items 687 -979 782
Change in working capital 609 234 -1,532
Cash from operating activities 9,688 8,479 8,944
Capital Expenditure -2,795 -2,714 -3,339
Other investing cash flow items 170 -291 -2,279
Cash from investing activities -2,625 -3,005 -5,618
Financing cash flow items 64 14 -1,363
Total cash dividends paids -3,434 -3,305 -3,517
Cash from financing activities -3,789 -3,306 -5,135
Foreign exchange effects -196 62 -67
Net change in cash 3,078 2,230 -1,876
14. Income Statement
(in millions)
Coca-cola Enterprises Inc.
12/31/2013 12/31/2012 12/31/2011
Total Revenue $46854000 $48017000 $46542000
Expenses 38270000 38998000 37958000
Net Income $8584000 $9019000 $8584000
Pepsivo Inc.
12/28/2013 12/29/2012 12/31/2011
Total Revenue $66415000 $65492000 $66504000
Expenses 59675000 59314000 60061000
Net Income $6740000 $6178000 $6443000
15. 80000000
60000000
40000000
20000000
0
2011 2012 2013
Coca-Cola
Revenue
Pepsico Revenue
80000000
60000000
40000000
20000000
0
2011 2012 2013
Coca-Cola
Expense
Pepsico Expense
10000000
8000000
6000000
4000000
2000000
0
2011 2012 2013
Net
income
Coca-Cola
Coca-Cola vs Pepsi Revenue – Expense –
Net Income (USD)
16. Balance sheet
(in millions)
Coca-Cola Pepsico
Current Assets $21,579 $17,569
Noncurrent assets $51,342 $50,584
Total assets $72,921 $68,153
Current Liabilities $18,508 $15,892
Noncurrent
$23,096 $30,785
liabilities
Owners’ Equity $31,317 $21,476
Total liabilities &
$72,921 $68,153
owners’ equity
17. Cash Flow
(in millions)
Coca-Cola Pepsico
Cash provided by
operating activities
$9,532 $8,448
Cash used by
investing activities
(4,405) (7,668)
Cash provided
(used) by financing
activities
(3,465) $1,386
Net increase in
cash
$1,662 $2,166
Fixed asset
expenditures
$2,215 $3,253
23. Conclusion
Strong industry players in soft drink/beverage
industry
Strong leaders in the highly profitable soft
drink/beverage industry
Coca-Cola possess the best recognized brand
worldwide that incurred a lower average cost of
sales. However, PepsiCo achieved even better
average sales growth rate annually
