Soda giant Coca-Cola said it expects annual organic sales at high-end of its previous range, betting on growing demand in the US. India and South Korea even as growth concerns in China and Middle East linger.
The company has been investing in emerging and developing markets by launching reformulated versions of its Sprite and Fanta and Fuze Tea in Europe as well as offering small pack sizes.
"Coca-Cola has shown some pretty fancy footwork to persuade drinkers to keep shelling out premium prices for its products," said Danni Hewson, head of financial analysis at AJ Bell.
"The team have doubled down on delivering the right product in the right places to the right people."
Quarterly Highlights
The beverage giant's average selling prices rose 10% in the third quarter, while unit case volumes fell 1%.
The company expects fiscal 2024 organic sales to grow about 10% compared with a prior forecast of 9% to 10% rise.
Its net revenue declined 1%, to $11.9 billion, compared to a year earlier. Analysts had expected a 2.62% drop to $11.60 billion, according to LSEG data.
James Quincey, chair and CEO of The Coca-Cola Company, stated, “Our business continues to demonstrate resilience in the face of a dynamic external environment.
“We are encouraged by our year-to-date performance and our system’s ability to manage near-term challenges while also remaining focused on long-term growth opportunities.”
EMEA Region
In the EMEA region, operating income declined 14%, impacted by a 12-point currency headwind as well as other factors.
Unit case volume declined 2% as growth in water, sports, coffee and tea was more than offset by declines in Trademark Coca-Cola, sparkling flavours and juice, value-added dairy and plant-based beverages.
Price/mix in the region grew 9%, driven by pricing from markets experiencing intense inflation as well as pricing actions across operating units, partially offset by unfavourable mix.
Concentrate sales were five points behind unit case volume, primarily due to the timing of concentrate shipments, the company added.
The company's NARTD (non-alcoholic ready to drink) beverages category gained value share in the EMEA, led by Romania, France and South Africa.
The company has appointed Netflix executive Bela Bajaria as a director of its board, with immediate effect.
News by Reuters, additional reporting by ESM.
