59.83 +0.06 (0.10%)
Pre-market: 7:15AM EST
|Bid||59.54 x 900|
|Ask||59.92 x 1100|
|Day's range||59.47 - 60.00|
|52-week range||44.42 - 60.07|
|Beta (5Y monthly)||0.39|
|PE ratio (TTM)||28.87|
|Earnings date||20 Apr 2020 - 26 Apr 2020|
|Forward dividend & yield||1.60 (2.67%)|
|Ex-dividend date||28 Nov 2019|
|1y target est||63.50|
(Bloomberg) -- As Asia-Pacific president of Dow Chemical Co., one of the world’s biggest producers of plastics and chemicals, Jon Penrice has 100 billion reasons to recycle.“About 8 million tons of plastics are going into the ocean annually,” he said in an interview. “If you look at plastic packaging, around 95% is not being recycled each year which is $100 billion worth of plastic, and that’s valuable for entrepreneurs.”At the center of the effort is Asia, which consumes almost half of the world’s plastic packaging, according to BloombergNEF, and imports even more waste from the U.S. and Europe. Solutions -- such as Indian vending machines that turn plastic bottles into polyester, and researchers in Singapore who are working out ways to clean up oil spills using the waste -- will be needed to meet demand for recycled plastics that’s forecast to rise faster than supply.The biggest challenge to the transition is to make recycled plastics at a price and quality that are competitive. Virgin plastic is derived from crude oil and is closely linked to the global oil price. Because the cost of recycled plastic is more stable, it becomes relatively more expensive when crude prices fall.See also: China Upended the Politics of Plastic and the World Is Still ReelingThe complexity of sorting different types of plastic is another hurdle, according to Penrice, as well as dealing with waste at source rather than producing a lot of carbon emissions by sending it half way around the world.An estimated $80 billion-$120 billion of value is lost because of packaging that goes into the environment, said Navneet Chadha, principal operations officer at the World Bank’s International Finance Corp., which helps fund private sector investment in developing countries. “We have to think of used plastic as a resource, not as a waste.”See also: World Seen Struggling to Recycle Even 50% of Its Plastic WasteBut Chadha cautioned that standards for recycled products need to be developed to avoid “unintended consequences”. Using plastic in road construction, for example, needs to be evaluated further as microplastics may be generated as the road decays, he said.Here are some of the ways plastic is being recycled in Asia:Traditional RecyclingPlastic waste is traditionally reused by collecting and sorting refuse and then melting it, a process known as mechanical recycling. Part of the problem is that a lot of garbage is tainted with food or chemicals and can’t cheaply be turned into high quality raw materials.“The biggest challenge is quality of recycled plastic,” said Jean-Marc Boursier, chief operating officer of SUEZ Group, one of the world’s largest recycling companies. “Major consumer goods companies like Danone, Pepsi or Coca Cola will not buy recycled plastic unless they are convinced that the quality is as good as virgin plastic.”SUEZ has nine plants globally that can turn a combined 500,000 tons of waste plastic into 150,000 tons of polymers, used to make shampoo bottles, car interiors and other products. The company is opening its first Asian plastic recycling plant this year in Thailand.Boursier suggests pricing the carbon savings into the recycled plastic price to take into account the environmental benefit.AerogelsA team of researchers at the National University of Singapore has developed a way to convert low-value plastic waste into aerogels -- ultra-light materials used in everything from diaper fillings to cleaning up oil spills.Around eight average plastic water bottles produce a square meter sheet of aerogel using the method, said Duong Hai Minh, an associate professor at the university who worked on the project. The researchers have sold commercial production rights to firms including Bronxculture in Singapore and DPN Aerogel JSC in Vietnam, he said.“People throw away plastic because there they don’t see any value,” Minh said. “As long as we can make it valuable, everyone will keep it and sell it.”HighwaysUsing plastic waste to build roads is gaining in popularity, not least because all types of plastic including difficult-to-recycle multilayered packaging and flexible films and coatings used to wrap chocolates and for food deliveries can be used. Dow Chemical and India’s Reliance Industries Ltd. have developed technologies that use this plastic as a binder, replacing some of the bitumen.The Mukesh Ambani-led company has built 40 kilometers of road at its refineries using plastic that can’t otherwise be recycled, and is in talks with National Highways Authority of India and other road builders about using the technology more widely, said Vipul Shah, chief operating officer for the petrochemicals business.Meanwhile Indian Oil Corp., the country’s biggest refiner, is trying to get the government to make the blending of non-recyclable plastics in road-laying mandatory, said S.S.V. Ramakumar, director of research and development.In the Philippines, San Miguel Corp. laid down its first road combining plastic scraps with asphalt last year, using surface material developed with Dow. The chemicals giant has also helped build plastic-based roads in India, Indonesia, Vietnam and the U.S., according to Dow’s Penrice.See also: The Philippines Is Making Roads and Cement With Plastic Garbage“It’s relatively simple from the technology point of view: you shred the plastic waste, some sorting and selection and then you feed it into the existing asphalt machinery,” he said. “Approximately 100 tons of plastic waste can be recycled into a 40-kilometer stretch of road.”TextilesShredding plastic bottles to produce polyester for clothing is another technology that’s gaining traction in Asia. Reliance has set up reverse-vending machines that collect used bottles in exchange for discount coupons that can be redeemed at its company stores.The company, India’s largest petrochemicals manufacturer, can recycle around 2 billion plastic bottles a year, or 33,000 tons, according to Shah. Capacity will be doubled over the next 18 months, he said.BricksSome non-government organizations and companies are looking at ways to use waste plastic to make bricks and other construction materials. The Global Ecobrick Alliance is promoting use of a block tightly crammed with plastic and other recyclables. Qube, an India-based start-up, has developed a brick made entirely of plastic waste. Called the PlastiQube, it’s cheaper and uses less energy to produce than conventional counterparts, according to the company’s website.Chemical RecyclingBreaking down waste plastic into a basic feedstock like naphtha -- a process called pyrolysis -- can reprocess dirty, contaminated plastics like detergent drums and mixed polymers that can’t be dealt with through mechanical recycling.Pyrolysis will provide around 17% of the 19 million tons of plastics recycling capacity required by 2030 in major economies, according to BloombergNEF. Dow will source oil feedstock made using pyrolysis from Dutch company Fuenix Ecogy Group, while Royal Dutch Shell PLC and Total SA have partnered with start-ups to increase use of the technology.“Mechanical recycling will continue to be cheaper,” said Boursier at SUEZ, which is setting up a pyrolysis pilot project in Bristol in the U.K. “But for complex or polluted plastic, chemical recycling will be the future.”(Company corrects second paragraph to show $100 billion is the value of all plastic packaging that’s not being recycled)To contact the reporters on this story: Saket Sundria in Singapore at email@example.com;Debjit Chakraborty in New Delhi at firstname.lastname@example.orgTo contact the editors responsible for this story: Serene Cheong at email@example.com, Andrew Janes, Adam MajendieFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
PepsiCo CFO Hugh Johnston discusses with Yahoo Finance how the coronavirus has impacted results in China for the beverage and snacks giant.
(Bloomberg Opinion) -- Most investors define value too narrowly, looking at price-to-earnings or price-to-book-value ratios. That misses key components of what makes a stock cheap, says this week's guest on Masters in Business, Chris Davis, chairman and chief executive officer of Davis Selected Advisors LP, which oversees more than $25 billion in mutual funds, exchange-traded funds and separately managed accounts.He offered this example: When insurance company Geico first began using Google advertising for customer acquisition, each new lead cost about $2. The next nearest customer acquisition vehicle for the insurer? Late-night cable television advertising, at a cost of $30 per customer. That enormous differential explained why Google was poised to take so much ad revenue from traditional media outlets. It also suggested that using the P/E ratio to determine how cheap or expensive Google gave a distorted and inaccurate valuation.Davis discussed the firm’s early days in the late 1960s, when it was running separately managed accounts, and decided to move into mutual funds after being asked to do so by several clients. Four decades later, similar requests from clients led the firm into ETFs. The firm’s four main investment strategies include concentrated versions of U.S., international, global and financials funds.Davis also sits on the board Coca Cola Co. and is vice chairman of the American Museum of Natural History.His favorite books can be seen here; a transcript of our conversation is here.You can stream/download the full conversation, including the podcast extras on Apple iTunes, Overcast, Spotify, Google, Bloomberg and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.Next week, we geek out on cars with Hannah Elliot, reviewer of supercars for Bloomberg.To contact the author of this story: Barry Ritholtz at firstname.lastname@example.orgTo contact the editor responsible for this story: James Greiff at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Coca-Cola is bringing the energy to the Big Game broadcast on Sunday, Feb. 2, with a star-studded ad celebrating the launch of Coca-Cola Energy – the first-ever energy drink under the brand in the United States.
U.S. equities rebounded sharply late to end in the green on Thursday. Equities were largely boosted by a string of impressive earnings reports that streamed in and helped investors finally look beyond their fears over the Coronavirus outbreak.
Diageo's (DEO) first-half fiscal 2020 results reflect gains from strong price/mix and higher operating profits. It cut the top-line view for fiscal 2020 on uncertainty in global trade conditions.
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Coca-Cola (KO) delivers strong revenue and earnings growth in fourth-quarter 2019. It gains significant value share globally, which along with strong volume and price/mix aids results.
Q4 GDP hit the tape ahead of today's opening bell, with results better than analysts had been predicting: +2.1% was 30 basis points higher than the 1.8% expected.
(Bloomberg) -- Coca-Cola Co. rose after reporting better-than-expected revenue growth for the fourth quarter, citing rising demand overseas and higher demand for its low-sugar offerings in the U.S.The Atlanta-based beverage giant said unit case volume gained 3%. Organic revenue, which strips out some items like currency effects, increased 7% -- above analysts’ average estimate of 4.9% growth, according to Bloomberg Consensus. Quarterly earnings matched the average of analysts’ predictions. See details here.Key InsightsDiversifying its product lineup beyond sugary soda is paying off. Coca-Cola Zero Sugar had another year of double digit volume growth, the Atlanta-based company said. Abroad, one of its juice and smoothie brand, Innocent, will expand further in 2020. The recently acquired dairy business, Fairlife, also has contributed to sales growth.Coca-Cola sees a gain of about 5% in organic revenue in 2020. The company sees earnings of about $2.25 a share for the year, 7% higher than the 2019 result.Executives said in a call with analysts that it is too early to tell what the short-term impact would be from the coronavirus outbreak in China that has killed more than 100 and disrupted daily life for millions. For now, the company is prioritizing employee safety and supporting efforts to contain the virus. Coke officials said that the SARS outbreak of almost two decades ago ended up not being particularly noticeable from a business standpoint.Market ReactionCoke shares rose as much as 2.9%, the most in three months, on Thursday.Get the full earnings report here.To contact the reporters on this story: Deena Shanker in New York at firstname.lastname@example.org;Andres Guerra Luz in New York at email@example.comTo contact the editors responsible for this story: Sally Bakewell at firstname.lastname@example.org, Jonathan Roeder, Cécile DauratFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Atlanta-based company said fourth-quarter revenue growth was led by its trademark Coca-Cola, that included products such as caffeinated beverage Plus Coffee and Zero Sugar soda. Retail sales of its flagship brand rose 6%, Chief Executive Officer James Quincey said, adding that volumes in the brand were positive for the second straight year. The company is also expanding its portfolio and bought dairy company Fairlife earlier this month after spending about $5 billion to buy Costa Coffee last year.
Coke (KO) delivered earnings and revenue surprises of 2.33% and 1.82%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?