CEO's letters to shareholders - Coca-Cola Company - Essay Example

CEO's letters to shareholders - Coca-Cola Company During 2007, Coke was able to register a gross profit margin of 64% showing its strong ability to control the critical costs and maintain its cost leadership in the market. Further Operating Income was 25% with net income of 21%. Probably the strongest sign for the investors remained the fact Coke has been able to provide a dividend of $1.36 per share which is a very strong indicator from the company to show its concern for its investors. In the current year; Coke has been able to successfully launch its new brand of Coke Zero in more than 37 countries and has proved itself as the best selling brand of coke so far.

The future outlook of the coke seems good as it has been continuously making new acquisitions in order to penetrate and develop new markets to broaden its product base. As a future strategy, Coke is considering to enter into the Sparkling Beverages business which according to Coke is its business of future. Overall the analysis of the CEO’s letter to the shareowners of the company clearly indicate the direction which the company is going to sought in the future and proposed plan of action to remain more competitive in the market by acquiring and making new strategic moves to solidify its position not only in North America but out of it too.

Pepsi Co has not yet been able to present its annual accounts for the year 2007 however based on the annual audited accounts of 2006, we can analyze the letter of CEO to the shareholders of Pepsi Co. during 2006, Pepsi Co has been able to achieve a volume growth of over 5% with net revenue growth of 8% whereas the earnings per share grew by 13% showing a very significant performance of the company in the year under review.