US bottler Coca-Cola Consolidated has reported net sales growth of 7% year-on-year to $6.65 billion (€6.11 billion) in its financial year 2023.
In the sparkling beverages segment, net sales increased 10.5%, while the still category witnessed 6.4% growth compared to the previous financial year, the company noted.
Standard physical case volume fell 1.9% in this period, which included a decline in sparkling and still categories of 0.3% and 6.1%, respectively.
'Record Operating Margins'
J Frank Harrison, III, chair and chief executive officer of Coca‑Cola Consolidated stated, “We achieved $834 million of operating profit, generated record operating margins and hit our highest level of operating cash flow."
Operating margin for the full financial year increased 220 basis points to 12.5% from 10.3% in 2022.
“These results reflect the strength of our brands, the talent and dedication of our 17,000 teammates and our commitment to creating value for our stockholders. We believe the momentum we have created, coupled with our strong balance sheet, position us to deliver another year of strong results in 2024,” he added.
Fourth-Quarter Performance
Coca‑Cola Consolidated saw a moderation in net sales growth in the fourth quarter from levels achieved in the first nine months of 2023 due to the implementation of price increases across its product portfolio in the previous financial year.
Net sales during the quarter amounted to $1.63 billion (€1.50 billion), registering an increase of 4% year-on-year.
Standard physical case volume increased 1.1% in this period. However, on a comparable basis, it remained flat compared with the fourth quarter of 2022, which included a 1.4% volume increase in the sparkling category and a 4.3% decline in the still category.
'A Year Of High Inflation'
Dave Katz, president and chief operating officer of Coca‑Cola Consolidated added, “We successfully navigated a year of high inflation and shifting consumer preferences by adjusting our commercial initiatives, expanding our variety of affordable packages and leveraging strong partnerships with our customers.
“Supply chain investments, especially projects focused on additional mini can and small bottle PET capacity, contributed significantly to our success in 2023.”
