Core Insights - Coca-Cola (KO.US) is expected to report Q2 earnings on July 22, with an anticipated EPS of $0.83, a 1.2% decline year-over-year, and revenue forecasted at $12.59 billion, reflecting a 1.9% increase from the previous year [1] Group 1: Financial Performance - Coca-Cola's Q1 adjusted EPS was $0.73, with revenue of $11.22 billion, slightly above market expectations [2] - The company's revenue growth rate has been declining since Q1 2022, with annual revenue growth slowing for three consecutive years, increasing from $43 billion to $47 billion [3] - The net profit margin has also shown a downward trend, decreasing from 25.69% in Q1 2022 to 23% currently [4] Group 2: Market Dynamics - Coca-Cola's growth has been primarily driven by price increases rather than volume growth, with a 4% price hike in North America contributing significantly to revenue [2] - 65% of Coca-Cola's revenue comes from international markets, making it sensitive to currency fluctuations [8] - Analysts predict a modest EPS growth rate of 6-8% over the next three years, which may be overly optimistic given current economic uncertainties [8] Group 3: Strategic Initiatives - The company is increasing its marketing spend to 11% of sales, up from a five-year average of 10%, focusing on low-calorie and nutritional beverages [9] - This strategic focus on marketing and innovation aims to enhance brand recognition and consumer engagement, potentially creating growth opportunities [9] - Despite global trade uncertainties, analysts maintain a cautiously optimistic outlook, expecting organic revenue growth of 5-6% and EPS growth of 2-3% for the year [9]