Jim Cramer's Best Blogs
Jul 21, 2012 | 01:37 PM EDT
Coca-Cola's Triumphant Quarter Posted at 6:23 a.m. EDT on Wednesday, July 18 Sometimes brands and management can triumph over pretty much everything. That's how I felt when listening to the Coca-Cola (KO - Get Report) call last night. Here's a company that's dealing with economic and currency headwinds globally -- a company that, given the circumstances, could have easily delivered a number that was merely fine. It did just the opposite. Coca Cola exceeded plan pretty much everywhere, and it was almost a throwback to the old days -- because the areas that were most exciting, that had the best growth, were none other than Brazil, Russia, India and China. Remember BRIC? Remember when BRIC used to save the day? Plus, the traditionally tough markets, like Germany, Japan and U.S. -- meaning, markets where there is competition and little growth -- were actually exceptionally good vs. expectations, with one believing it came at the expense of Pepsico (PEP). I don't know that for sure, and I know Pepsi isn't that big in Germany anyway. It would offer more of a challenge in Russia and China. Still, the aggressive nature of this old-line company in these mature markets took my breath away. The most incredible aspect of this multinational company is how it deals with the fleeting, the currency and the commodity. For currencies, while Coca-Cola hedges, there is no doubt you are talking about severe, mid- to high-single-digit hits in the next six months. But even there, the company put a good face on it, saying that it expects the big, bad compares to end by the second half. As for the commodity issue, what about the price of corn? It's simply not important -- not when compared to last year's commodity line, which was bad on every single plane. We tend to forget that oil is the most important line-item for most packaged goods companies. We forget that the retreat of oil, simultaneous to abatement of price-cutting, turns into the kind of margins that surprise, even for a predicable company like Coca-Cola.
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