1Coca-Cola Reports Continued Momentum in Second Quarter;Updates Full Year GuidanceNet Revenues Grew 6%; Organic Revenues (Non-GAAP) Grew 6%Operating Income Grew 8%; Comparable Currency Neutral Operating Income (Non-GAAP) Grew 14%Operating Margin Was 29.9%; Comparable Operating Margin (Non-GAAP) Was 30.3%, Including the Impact fromCurrency Headwinds and AcquisitionsEPS Grew 12% to $0.61; Comparable EPS (Non-GAAP) Grew 4% to $0.63, Despite a 9% Currency HeadwindATLANTA, July 23, 2019 The Coca-Cola Company today reported strong operating results in the second quarter of 2019, driven by consumer-centric innovation, solid core brand performance and improved execution in the marketplace. Reported net revenues and organic revenues (non-GAAP) both grew 6% through balanced volume and price/mix, with all operating segments contributing to organic revenue (non-GAAP) growth. The company continued to gain global value share. The companys performance year-to-date led to an update in full year guidance.“Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry,“ said James Quincey, chairman and CEO of The Coca-Cola Company. “Our progress is positioning the company to create more value for all of our stakeholders, including our shareowners.“HighlightsQuarterly Performance Revenues: Net revenues grew 6% to $10.0 billion. Organic revenues (non-GAAP) grew 6%. Revenue growth was driven by concentrate sales growth of 4% and price/mix growth of 2%. Margin: Operating margin, which included items impacting comparability, was 29.9% versus 29.4% in the prior year. Comparable operating margin (non-GAAP) was 30.3% versus 30.6% in the prior year. Strong underlying operating margin (non-GAAP) expansion was offset by an approximate 185 basis point negative impact from currency headwinds and net acquisitions. Earnings per share: EPS grew 12% to $0.61. Comparable EPS (non-GAAP) grew 4% to $0.63. Comparable EPS growth included the impact from a 9-point currency headwind. Market share: The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages. Cash flow: Year-to-date cash from operations was $4.5 billion, up 68% largely due to strong underlying growth, working capital initiatives and the timing of tax payments. Year-to-date free cash flow (non-GAAP) was $3.7 billion, up 87%.2Company Updates Driving sparkling: Strong performance for the quarter was driven by sparkling soft drinks, led by 4% volume and transaction growth in trademark Coca-Cola. Coca-Cola Zero Sugar continues to perform well, with a seventh consecutive quarter of double-digit volume growth globally. Quarterly performance was further driven by innovation, such as Coca-Cola Plus Coffee, and a modernized marketing strategy for today's consumers. The company reached a first-of-its-kind partnership with Netflix to temporarily bring back 1985s New Coke for the July 4 debut of season 3 of the hit series “Stranger Things.“ Growing coffee: During the quarter, the company launched the first-ever Costa Coffee ready-to-drink (RTD) chilled product in Great Britain, marking the first major introduction since Coca-Cola acquired Costa earlier this year. The company plans to roll out the product in additional markets in the second half of the year. The brand delivers an authentic coffee taste experience with 30% less sugar than most RTD coffees in Costas core market of Great Britain. The Costa Coffee brand is also expanding through a new agreement with Coca-Cola HBC AG. The agreement will address a broad range of consumer and customer needs across multiple channels and occasions, including roast and ground coffee, RTD offerings and vending. The bottler plans to introduce Costa Coffee in at least 10 markets in 2020. Expanding energy: The first energy drink under the Coca-Cola brand launched in select European countries during the quarter. Coca-Cola Energy features caffeine from naturally derived sources, guarana extracts, B vitamins and no taurine, all with the great Coca-Cola taste and feeling that people know and love. The product has shown early signs of success. Coca-Cola Energy is now available in 14 countries, including recent launches in Japan, Australia and South Africa. The company expects to offer Coca-Cola Energy in 20 markets by the end of 2019, including Mexico and Brazil. Lifting, shifting and scaling: Since the company's initial investment in the innocent business in 2009, the innocent team has taken the business from the #1 smoothie brand in the U.K. to the #1 chilled juice brand across Europe. The brand is now expanding into Asia for the first time through a targeted rollout, starting in Tokyo. Innocent is loved by consumers who want more functional and nutritional benefits in their daily diet, in addition to those who enjoy natural, delicious and healthy juices and smoothies. Making progress in packaging: The company continues to make progress on its World Without Waste goals for recycling, recyclable packaging and the use of recycled materials, including these recent milestones: Bottlers worldwide continue to introduce more brands in 100% recycled PET (rPET) packaging. Recent launches include the green tea brand Hajime Ichinichi Ippon in Japan; the Romerquelle and Valser water brands in Austria and Switzerland, respectively; Viva water in the Philippines; and San Luis water in Peru. In Western Europe, 100% rPET bottles will be launched for smartwater, Chaudfontaine and Honest by the end of 2019. Coca-Cola Amatil and Coca-Cola Australia announced that 70% of all PET bottles in the market will be made from 100% rPET by the end of 2019. Coca-Cola European Partners and Coca-Cola Great Britain announced a switch from green to clear bottles for Sprite in their markets as a way to improve recycling. Other markets are making this change as well. Coca-Cola Beverages Philippines, the bottling arm of Coca-Cola in the Philippines, announced that it will lead the investment in a $19 million state-of-the-art, food-grade recycling facility that will collect, sort, clean and wash post-consumer recyclable plastic bottles and turn them into new bottles using advanced technology. It is Coca-Colas first major investment in a recycling facility in Southeast Asia. Coca-Cola Vietnam led the launch of an industry-backed packaging recovery organization alongside other companies. The organization will initially focus on increasing recovery and recycling rates for three materials: PET, aluminum and Tetra Pak®.Tetra Pak® is a U.S. registered trademark of Tetra Laval Holdings water, enhanced water and sports drinks; and juice, dairy and plant-based beverages.Asia Pacific Price/mix declined 3% for the quarter, largely driven by geographic mix due to growth in emerging and developing markets outpacing developed markets. Unit case volume grew 7% due to broad-based growth across nearly all key markets. Volume growth was led by India, Southeast Asia and China. Operating income grew 4%. Comparable currency neutral operating income (non-GAAP) grew 7%. Operating income growth was primarily driven by organic revenue (non-GAAP) growth and a benefit from the timing of expenses. The company gained value share in total NARTD beverages, driven by strong performance in China and Southeast Asia.Global Ventures Reported net revenues benefited from the Costa acquisition. Price/mix declined 3%, largely driven by innocent product mix as growth in juices outpaced smoothies, in addition to cycling strong 8% price/mix growth in the prior year. Unit case volume grew 5% as strong growth in innocent and the energy category was partially offset by a decline in the do adan tea business in Turkey. Operating income growth benefited from the Costa acquisition.Bottling Investments During the quarter, the company announced that it will maintain its majority stake in Coca-Cola Beverages Africa (CCBA) for the foreseeable future. As a result, CCBA is now presented within the companys results from continuing operations and is included in the Bottling Investments operating segment. Price/mix grew 3% for the quarter, largely driven by solid performance from CCBA and the company's bottling operations in India. Operating income was favorably impacted by comparability items and the acquisition of bottling operations in the Philippines.6Operating Review Six Months Ended June 28, 2019Revenues and VolumePercent ChangeConcentrate Sales1Price/MixCurrencyImpactAcquisitions,Divestitures andStructural Items, NetReportedNetRevenuesOrganic Revenues2UnitCaseVolumeConsolidated 3 3 (6) 6 5 6 2Europe, Middle East the exact timing and amount of acquisitions, divestitures and/or structural changes; and the exact timing and amount of comparability items throughout 2019. The unavailable information could have a significant impact on full year 2019 GAAP financial results.Full Year 2019 Revenues: 5% growth in organic revenues (non-GAAP) Updated 12% growth in comparable currency neutral net revenues (non-GAAP), including a 7% tailwind from acquisitions, divestitures and structural items Updated Comparable net revenues (non-GAAP): 4% currency headwind based on the current rates and including the impact of hedged positions UpdatedFull Year 2019 Operating Income: 11% to 12% growth in comparable currency neutral operating income (non-GAAP), including a low single-digit tailwind from acquisitions, divestitures and structural items Updated Comparable operating income (non-GAAP): 7% to 8% currency headwind based on the current rates and including the impact of hedged positions UpdatedFull Year 2019 EPS: -1% to 1% growth versus $2.08 in 2018 in comparable EPS (non-GAAP) No ChangeFull Year 2019 Other Items: Underlying effective tax rate (non-GAAP): Estimated to be 19.5% No Change Cash from operations: At least $8.5 billion Updated Capital expenditures: Approximately $2.4 billion Updated Net share repurchases (non-GAAP): Share repurchases to offset dilution from employee stock-based compensation plans No ChangeThird Quarter 2019 Considerations New: Comparable net revenues (non-GAAP): 6% tailwind from acquisitions, divestitures and structural items; 3% currency headwind based on the current rates and including the impact of hedged positions Comparable operating income (non-GAAP): 6% currency headwind based on the current rates and including the impact of hedged positions8Notes All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period. All references to volume and volume percentage changes indicate unit case volume, unless otherwise noted. All volume percentage changes are computed based on average daily sales, unless otherwise noted. “Unit case“ means a unit of measurement equal to 24 eight-ounce servings of finished beverage. “Unit case volume“ means the number of unit cases (or unit case equivalents) of company beverages directly or indirectly sold by the company and its bottling partners to customers. “Concentrate sales“ represents the amount of concentrates, syrups, beverage bases, source waters and powders/minerals (in all instances expressed in equivalent unit cases) sold by, or used in finished beverages sold by, the company to its bottling partners or other customers. In the reconciliation of reported net revenues, “concentrate sales“ represents the percent change in net revenues attributable to the increase (decrease) in concentrate sales volume for the geographic operating segments and the Global Ventures operating segment (excluding Costa non-RTD sales) (expressed in equivalent unit cases) after considering the impact of structural changes. For the Bottling Investments operating segment, this represents the percent change in net revenues attributable to the increase (decrease) in unit case volume computed based on total sales (rather than average daily sales) in each of the corresponding periods after considering the impact of structural changes. The Bottling Investments operating segment reflects unit case volume growth for consolidated bottlers only. “Price/mix“ represents the change in net operating revenues caused by factors such as price changes, the mix of products and packages sold, and the mix of channels and geographic territories where the sales occurred. First quarter 2019 financial results were impacted by one less day as compared to the same period in 2018, and fourth quarter 2019 financial results will be impacted by one additional day as compared to the same period in 2018. Unit case volume results for the quarters are not impacted by the variances in days due to the average daily sales computation referenced above.Conference CallThe company is hosting a conference call with investors and analysts to discuss second quarter 2019 operating results today, July 23, 2019, at 8:30 a.m. ET. The company invites participants to listen to a live webcast of the conference call on the companys website, coca-colacompany, in the “Investors“ section. An audio replay in downloadable digital format and a transcript of the call will be available on the website within 24 hours following the call. Further, the “Investors“ section of the website includes certain supplemental information and a reconciliation of non-GAAP financial measures to the companys results as reported under GAAP which may be used during the call when discussing financial results.Contacts: Investors and Analysts: Tim Leveridge, koinvestorrelationscoca-cola Media: Scott Leith, sleithcoca-cola9THE COCA-COLA COMPANY AND SUBSIDIARIESCondensed Consolidated Statements of Income(UNAUDITED)(In millions except per share data)Three Months EndedJune 28,2019June 29,2018%ChangeNet Operating Revenues $ 9,997 $ 9,421 6Cost of goods sold 3,921 3,543 11Gross Profit 6,076 5,878 3Selling, general and administrative expenses 2,996 2,887 4Other operating charges 92 225 (59)Operating Income 2,988 2,766 8Interest income 142 173 (18)Interest expense 236 247 (4)Equity income (loss) net 329 324 2Other income (loss) net (174) (74) (135)Income Before Income Taxes 3,049 2,942 4Income taxes 421 611 (31)Consolidated Net Income 2,628 2,331 13Less: Net income attributable to noncontrolling interests 21 15 30Net Income Attributable to Shareowners of The Coca-Cola Company $ 2,607 $ 2,316 13Basic Net Income Per Share1 $ 0.61 $ 0.54 12Diluted Net Income Per Share1 $ 0.61 $ 0.54 12Average Shares Outstanding 4,269 4,255 0Effect of dilutive securities 36 35 3Average Shares Outstanding Assuming Dilution 4,305 4,290 0Note: Certain growth rates may not recalculate using the rounded dollar amounts provided. 1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.10THE COCA-COLA COMPANY AND SUBSIDIARIESCondensed Consolidated Statements of Income(UNAUDITED)(In millions except per share data)Six Months EndedJune 28,2019June 29,2018%C