Coca Cola 2014 Annual Report Download - page 50

48
Net Operating Revenues
Year Ended December 31, 2014 versus Year Ended December 31, 2013
The Company’s net operating revenues decreased $856 million, or 2 percent.
The following table illustrates, on a percentage basis, the estimated impact of key factors resulting in the increase (decrease) in net
operating revenues for each of our operating segments:
Percent Change 2014 vs. 2013
V olume
1
Structural
Changes
Price, Product &
Geographic Mix
Currency
Fluctuations
T otal
Consolidated 1% (2)% 1% (2)% (2)
%
Eurasia & Africa 3% —% 4% (8)% (1)
%
Europe (2) — 4 2 4
Latin
America — (4) 8 (10) (6)
North
America (1) (1) 1 — (1)
Asia P acific 5 1 (2) (6) (2)
Bottling
Investments 5 (9) (2) (2) (8)
Corporate * * * * *
* Calculation is not meaningful.
1
Represents the percent change in net operating revenues attributable to the increase (decrease) in concentrate sales volume for our geographic operating
segments (expressed in equivalent unit cases) after considering the impact of structural changes. For our Bottling Investments operating segment, this
represents the percent change in net operating revenues attributable to the increase (decrease) in unit case volume after considering the impact of
structural changes. Our Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only. Refer to the heading
“Beverage Volume” above.
Refer to the heading “Beverage Volume” above for additional information related to changes in our unit case and concentrate sales
volumes.
Refer to the heading “Structural Changes, Acquired Brands and Newly Licensed Brands” above for additional information related to
the structural changes.
Price, product and geographic mix had a favorable 1 percent impact on our consolidated net operating revenues. Price, product and
geographic mix was impacted by a variety of factors and events including, but not limited to, the following:
• Eurasia and Africa — favorable price mix in all of the segment’s business units;
• Europe — favorable impact as a result of consolidating the juice and smoothie business of Fresh Trading Ltd. (“innocent”) in
May 2013 and favorable price mix in the Central & Southern Europe, Northwest Europe & Nordics, and Iberia business units;
• Latin America — favorable price mix in all four of the segment’s business units and the impact of inflationary environments in
certain markets; and
• Asia Pacific — unfavorable geographic mix.
The unfavorable impact of foreign currency fluctuations decreased our consolidated net operating revenues by 2 percent. The
unfavorable impact of changes in foreign currency exchange rates was primarily due to a stronger U.S. dollar compared to certain
other foreign currencies, including the South African rand, Mexican peso, Brazilian real, Australian dollar and Japanese yen, which
had an unfavorable impact on our Eurasia and Africa, Latin America, Asia Pacific and Bottling Investments operating segments. The
unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker
U.S. dollar compared to certain other foreign currencies, including the euro and British pound, which had a favorable impact on our
Europe and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position —
Foreign Exchange” below.
Net operating revenue growth rates are impacted by sales volume; structural changes; price, product and geographic mix; and
foreign currency fluctuations. The size and timing of structural changes are not consistent from period to period. The impact of the
Venezuelan Fair Price Law reduced our Latin America segment revenues by 5 percent in 2014.