Coca-Cola’s sales witnessed a boost in revenues, driven by higher prices and volumes, despite challenges in certain markets and the impact of the Middle East war, as revealed in the company’s Tuesday financial results.
The soda giant reported a seven percent increase in revenues from the previous year, reaching $10.9 billion. This growth was attributed to a two percent rise in volumes and a nine percent increase in the price/mix category, encompassing factors such as retail venue, product size, and sticker price. However, profits experienced a three percent dip, settling at $2.0 billion.
CEO James Quincey noted that consumers in North America were resilient, though there was a slight softening in the United States throughout 2023 due to elevated prices affecting low-income shoppers. Quincey acknowledged a positive shift in early 2024, with economic indicators strengthening, and consumers feeling more confident in managing inflation.
In Europe, consumers remained cost-conscious, while uncertainties persisted in Africa and China. The Middle East conflict impacted volume growth by approximately one point in the fourth quarter, according to Chief Financial Officer John Murphy.
Coca-Cola projected a revenue growth of six to seven percent for 2024, excluding the effects of foreign exchange and acquisitions. Despite the positive financial results, shares of Coca-Cola experienced a 1.2 percent dip in afternoon trading.
