Comparing Coca Cola & Pepsi’s Performance in 2018.
|Net Revenue.||$64.7 Billion||$31.9 Billion|
|Net Income.||$12.56 Billion||$6.4 Billion|
|Gross Profit.||$35.3 Billion||$20 Billion|
|Marketing Expenses.||$4.2 Billion||$4.1 Billion|
|Research & Development Costs.||$680 Million|
|Selling, General & Administrative Costs.||$25.17 Billion||$10.3 Billion|
Pepsi and Coca Cola are the two leading brands in the soda industry. Both have a large product portfolio and an empire that spans more than 200 countries. The intense rivalry between the two players is well known. In the recent years, Pepsi has seen comparatively faster growth. Coca Cola on the other hand, has experienced continuous decline in its revenue over the recent years.
2018 was a great year for Pepsico in terms of financial performance. However for Coca Cola, the year did not prove as great since its net revenues and gross profit declined. Pepsi’s revenues climbed by $1.14 billion. Moreover, Pepsi’s revenue for 2018 was more than double that of Coca Cola. Pepsi’s revenue was $64.7 billion and Coca Cola on the other hand, generated $31.9 billion in net revenue for 2018. Coca Cola sold 29.6 billion unit cases in 2018 compared to 29.2 billion previous year.
Coca Cola experienced a 10% decline in its net revenue in 2018 as compared to 2017. Its gross profit also fell by 9% coming down to $20 billion in 2018 from $22.15 billion previous year. On the other hand, Pepsi’s Gross profit grew slightly and reached $35.3 billion in 2018 compared to $34.73 billion in 2017.
The marketing expenditure of the two brands was nearly equal. Coca Cola’s expenditure on marketing was $4.1 billion and that of Pepsico $4.2 billion.
Selling, general and administrative expenses of Pepsico grew by around 2.9% rising to $25.2 billion in 2018 from $24.5 billion in 2017. The S,G&A expenses of Coca Cola on the other hand, fell by 19% coming down to $10.3 million in 2018 from $12.7 million in 2017.
About Coca Cola:
Coca Cola is a leading brand of sparkling and nonsparkling beverages. It is the largest competitor of Pepsico and its products sell in virtually all countries of the world. It has its headquarters in Atlanta, Georgia. The company owns or licenses and markets more than 500 nonalcoholic beverage brands. They are grouped into the following categories: sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant-based beverages; tea and coffee; and energy drinks. Coca-Cola also owns and markets four of the world’s top five nonalcoholic sparkling soft drink brands: Coca-Cola, Diet Coke, Fanta, and Sprite. Finished beverage products bearing Coca-Cola trademarks, sold in the United States since 1886, are now sold in more than 200 countries and territories. In 2019, the net operating revenue of Coca Cola grew to $37.3 billion from $34.3 billion in the previous year. Coca-Cola’s largest market is the United States that accounted for around 32% of its net operating revenues in 2019.