🥤 Coca-Cola - More than just a drink ( $KO (-0,4 %) )

Coca-Cola is not just a brand - it's a global phenomenon. Whether you're in the USA, Europe, Asia or Africa, the red and white logo is omnipresent.

But what makes this share so special that it has been one of the favorites of many investors for decades?

🍾 A look at the brand

Coca-Cola is the global leader in the beverage sector and owns over 200 brands, including:

• Sprite
• Fanta
• Schweppes
• Minute Maid
• Costa Coffee
• Fuze Tea
• Powerade

With a market share of around 50 % for soft drinks in the USA and a strong presence in over 200 countries, Coca-Cola is a real heavyweight in the consumer goods industry.

💰 Why Coca-Cola is a dividend king

Coca-Cola has an impressive dividend history:

• 61 consecutive years of dividend increases.
• A current dividend yield of around 3 %coupled with solid increases.
• The company returns around 75% of its profits to shareholders - a sign of stability.

For many investors, Coca-Cola is a reliable cash flow provider, especially in times of crisis.

📈 Why the share remains attractive despite the growth limit

Coca-Cola may be growing more slowly than young tech companies, but there is still potential:

1)
New markets: The company is investing heavily in emerging markets, where per capita consumption of soft drinks is expected to continue to rise.

2)
Diversification: In addition to sugary drinks, Coca-Cola is also growing in areas such as water, coffee and energy drinks through, for example, its ownership of shares in Monster Beverage ( $MNST (-0,16 %) ) .

3)
Inflation protection: With strong brands, Coca-Cola can often easily pass on price increases to customers.

🧠 Thoughts on risks and the future

Critics criticize the dependence on sugary drinks, especially in times when healthy eating is becoming increasingly important.

But Coca-Cola is showing flexibility and investing more in healthier alternatives and sustainable packaging.

🤔 Why I have Coca-Cola in my portfolio

For me, Coca-Cola is a real classic and also the first stock I had in my portfolio.

The stability, the dividend yield and the global strength of the brand make it a perfect basic position in my portfolio.

It's not the most exciting stock, but definitely one that pays off in the long term.

📣 What do you think?

Coca-Cola: A must-have stock for dividend hunters, or are there more exciting alternatives in the consumer goods sector like PepsiCo ( $PEP (+0,05 %) ) or other stocks?

I'm looking forward to your opinions! 🌐

TradeRepublic is offering a new way to give away shares and ETF units. It's easy to do by e-mail and gives you the chance to win shares worth up to €10,000.

You can now send shares and ETFs directly by e-mail. If you send a value of at least €25, you automatically qualify for the competition.

If you don't have any friends, you can also send the shares to yourself and take part in the competition yourself.

I personally find it really interesting and would have tried to motivate some people to start investing.

Well, unfortunately I didn't win anything, but I wish you every success. Who will you be sending a share to? 🎁

$VUAG (+0,34 %)
$IWDA (+0,23 %)
$MNST (-0,16 %)

I have now sold my small position $MNST (-0,16 %) now sold.

I bought the position back on 23.03.2022 as it was included in various analyses and almost all analysts saw a buy in the share. As a result, I actually bought it quite naively. Simply to get back into the stock market after buying a house.

True to the motto: there can't be more than 0!

In the meantime, I no longer take such a naïve view and the current figures and forecasts for the coming years, as well as the situation surrounding $CELH and the general situation in the energy drinks sector have finally persuaded me to sell this position.

I will use the amount to increase the $ACWI again soon.

Monster Beverage Q3 2024 $MNST (-0,16 %)

Financial performance:

• Net sales: Net sales increased 1.3% to $1.88 billion in the third quarter of 2024, compared to $1.86 billion in the prior year. For the first nine months of 2024, net sales increased 5.0% to USD 5.68 billion, reflecting moderate growth.
• Net income: Net income decreased by 18.1% to USD 370.9 million in the third quarter of 2024, compared to USD 452.7 million in the same quarter of 2023. Adjusted net income decreased by 8.8% to USD 392.4 million.
• EBITDA and operating result: Although no explicit EBITDA is provided, operating income decreased to USD 479.9 million from USD 510.5 million in the third quarter of 2023, indicating increased costs or decreasing efficiency.

Balance sheet overview:

• Assets: As of September 30, 2024, total assets were USD 8.05 billion, compared to USD 9.69 billion as of December 31, 2023, indicating a significant decrease.
• Liabilities: Current liabilities amounted to USD 1.25 billion, a healthy figure compared to total assets.
• Equity: Shareholders' equity amounted to USD 5.78 billion, indicating a stable financial base.

Income structure:

• Main revenue drivers: The main revenue drivers are from the Monster Energy® Drinks, Strategic Brands and Alcohol Brands segments.
• Cost of sales: Cost of sales for the third quarter of 2024 amounted to USD 881.2 million.
• Margins: Gross profit margin as a percentage of net sales was 53.2%, slightly improved from 53.0% in the third quarter of 2023, indicating a slight improvement in efficiency.

Cash flow overview:

No specific details on cash flows from operating, investing or financing activities were provided, making it difficult to assess liquidity.

Key ratios and profitability metrics:

• Net income margin: Net income margin was 19.7% in Q3 2024, demonstrating a healthy net income to revenue ratio.
• Other key figures: Historical data on other key metrics such as ROIC, ROE and leverage are missing, making it difficult to assess long-term profitability.

Segment information:

• Monster Energy® Drinks: Sales increased by 0.8% to USD 1.72 billion, keeping the core business stable.
• Strategic Brands: Sales in this segment increased by an impressive 14.0% to USD 112.6 million.
• Alcohol Brands: Sales fell by 6.0% to USD 39.8 million, which is a challenge.

Competitive Position:

The company noted that the energy drink category is growing globally, but at a slower rate in the US convenience channel.

Forecasts and management comments:

• Price increase: A price increase of approximately 5.0% has been implemented for certain brands from November 1, 2024, which could strengthen margins in the short term.
• Growth potential: Management sees growth opportunities in household penetration and per capita consumption, particularly through international expansion and innovation.

Risks and opportunities:

• Risks: The risks include unfavorable exchange rates and a tense consumer environment, which could have a negative impact on sales development.
• Opportunities: Growth potential lies in innovation and expansion on international markets, which can strengthen the market position.

Summary of results:

Positive aspects:

Net sales growth: Record sales growth of 1.3% in the third quarter, despite challenging conditions.

Strong growth in the Strategic Brands segment: An increase of 14.0% demonstrates the successes in this emerging business area.

Improved gross profit margin: The slight improvement to 53.2% shows stability and efficiency.

Growth in international business: Sales outside the USA increased by 3.6%, underlining the success of the global expansion strategy.

Innovative strength: New product launches such as Monster Energy® Ultra Vice Guava™ were positively received by consumers, strengthening the market position.

Negative aspects:

Decline in net result: An 18.1% decline in net profit shows challenges in profitability.

Decrease in operating profit: Operating profit fell to USD 479.9 million, indicating rising costs or weaker revenues.

Decline in Alcohol Brands segment: A 6.0% decline in sales indicates difficulties in this segment.

Higher operating expenses: Operating expenses increased as a percentage of net sales, impacting profitability.

Exchange rate impact: Unfavorable exchange rates impacted net sales and could continue to be a challenge.

Monster Beverage
$MNST (-0,16 %) has just announced its quarterly figures.

The earnings per share (EPS) amounted to 0,40 USD and is therefore below expectations of 0,43 USD.

The turnover amounted to 1.88 billion USD and is also below expectations of 1.91 billion USD.

This week it's Monster's turn.

https://quartr.com/insights/company-research/unleash-the-beast-the-juicy-origins-of-monster-beverage?utm_source=edge&utm_medium=email&utm_campaign=edge_37

$MNST (-0,16 %)
$CELH

A magical moment ❤️

Over 100k deposit size for the first time. Let's see how sustainable the current valuations are, but it's still something special for me to have reached this amount.

I've been invested since the end of 2020 with a lot of back and forth, but I think I've now found a strategy for myself.

The individual stocks are at $MCD (-0,31 %) and $MNST (-0,16 %) in the portfolio for personal reasons. In other words, I actually eat the cake from time to time and drink too much energy 🙃 (and because I can't completely say goodbye to individual stocks - it's just more fun). $BATS (-0,24 %) was a turnaround bet that worked out and remains in the portfolio due to the high dividend. However, I am also fundamentally convinced by all three.

The ETF $TDIV (+0,29 %) and $VHYL (+0,11 %) are my mainstays and will be expanded further. $VFEM (-0,05 %) The Emerging Markets ETF is included because I wanted to overweight the emerging markets, which seems to be working out quite well at the moment. Let's see how that develops. If the tech valuations come back at some point, I will also put a portion back into the $VWRL (+0,18 %) again. At least that's the plan 😉

Companies that I find interesting but do not yet have in my portfolio and that have a 10-year average ROIC of over 10% and a 5-year average ROCE and ROIC of over 10%, $ANET, $MA (-0,34 %) , $VRTX (-0,44 %) , $RMS (+0,75 %) , $PGHN (-0,02 %) , $COLO B (+0,94 %) , $ACN (-1,66 %) , $MNST (-0,16 %)
$FICO (+1,63 %) , $MCO (+0,31 %) , $KNIN (+0,44 %) , $S&P Global, $ISRG (-0,89 %)
$III (+0 %) , $BKNG (-1,19 %)
$HLAG (+1,67 %) , $QCOM (+2,48 %) , $CFR (+0,21 %) and $IFX (-1,35 %) . Already blatant companies

Hello,

I would like to minimize my consumer staples allocation.

What would you remove or reallocate?

$MNST (-0,16 %)

$RKT (-0,36 %)

$NESNE (adr :()

$ULVR (-1,44 %)

$ADM (+1,28 %)

$PEP (+0,05 %)

$MMM (+1,06 %)

Thank you!