Despite facing a dip in demand across North America, Coca-Cola has managed to surpass expectations with strong sales figures in the fourth quarter.
The beverage giant from Atlanta revealed a notable 7% surge in revenue, reaching $10.8 billion during the period spanning from October to December. This impressive result exceeded Wall Street’s projections of $10.7 billion, as per analysts surveyed by FactSet.
While acknowledging a probable moderation in revenue growth for the upcoming year, Coca-Cola anticipates a 6% to 7% organic revenue expansion, a step down from the previous year’s 12% growth. The company attributed last year’s revenue surge in part to a 10% boost from increased prices, although it anticipates these price hikes to level off in tandem with inflation.
In terms of volume, unit case volumes experienced a 2% increase in the quarter, primarily driven by sparkling soft drinks, juices, and Coca-Cola Zero Sugar. Conversely, there was a decline in demand for sports drinks, coffee, and tea.
Within the North American market, there was a slight 1% decrease in unit case volumes, offset by growing sales in juice, dairy, and Coca-Cola products, while demand for water, sports drinks, coffee, and tea experienced a decline. Coca-Cola noted an 8% rise in prices during the quarter, albeit lower than the double-digit increases implemented earlier in 2023. However, the company acknowledged that higher prices may be straining some consumers, leading them to opt for cheaper store brands.
Meanwhile, unit case volumes saw growth in Coca-Cola’s other global markets. Despite a 3% decline in net income to $1.9 billion, or 46 cents per share, factoring in one-time expenses such as restructuring costs, the company earned 49 cents per share, in line with Wall Street’s expectations. In premarket trading, Coca-Cola shares saw a nearly 1% increase.
