Home News Coca-Cola's Q4 sales rise as higher prices offset lower volume in North America

Coca-Cola's Q4 sales rise as higher prices offset lower volume in North America

by SuperiorInvest

Key takeaways

  • Coca-Cola reported better-than-expected sales in the fourth quarter of 2023.
  • Sales grew 7% from a year earlier to $10.85 billion, driven by higher prices.
  • Adjusted earnings per share of 49 cents met analysts' expectations.
  • The company expects to grow its organic revenue by 6% to 7% and adjusted EPS by 4% to 5% in 2024.

The Coca-Cola Company (KO) easily beat analyst estimates for fourth-quarter sales. The company's shares rose about 1% in premarket trading Tuesday.

Net income for the quarter fell about 3% from a year earlier to $1.977 billion, or 46 cents per diluted share. Excluding certain items and currency impact, adjusted earnings per share came to 49 cents per diluted share, in line with analyst estimates compiled by Visible Alpha.

Sales revenue rose about 7% to $10.85 billion, driven by higher prices. Net of currency impact, organic revenue grew 12% thanks to 25% growth in Europe, the Middle East and Africa; 23% in Latin America; and 13% in Asia Pacific.

Unit case volume, a measure of the volume of beverages sold by Coca-Cola, increased the most in the Latin American market. In North America, higher prices helped offset the impact of lower sales volume.

The company expects to grow its organic revenue by 6% to 7% and adjusted EPS by 4% to 5% in 2024, but said it faces a 4% currency headwind in the first quarter of the year.

Fourth quarter of 2023 Analyst estimates for the fourth quarter of 2023 Fourth quarter of 2022
Revenue 10.85 billion dollars $10.76 billion $10.12 billion
Adjusted earnings per share 49 cents 49 cents 45 cents
Net income 1.97 billion dollars $2.15 billion 1.94 billion dollars

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