“Coca-Cola Projects Revenue Surge in 2024 Amid Rising Soda Demand in the U.S.”
Shares of the company dropped 1.5% in premarket trading after Coca-Cola reaffirmed its growth forecast, projecting annual adjusted profit growth of 5% to 6% despite recent price increases.
Coca-Cola is targeting the upper end of its organic sales forecast for 2024, driven by increasing demand for its premium sodas and juices in the U.S., which contributed to a surprise rise in quarterly sales on Wednesday.
However, shares of the company declined 1.5% in premarket trading as Coca-Cola reaffirmed its growth forecast for annual adjusted profit, predicting an increase of 5% to 6% despite recent price hikes.
To stimulate growth, Coca-Cola has been experimenting with different pack sizes. In the U.S., it introduced 12-ounce slim cans to appeal to budget-conscious consumers, while in India and South Korea, it launched reformulated versions of Sprite and Fanta.
The company reported a 10% increase in its average selling price in the third quarter, though unit case volumes dipped by 1%. It now anticipates annual organic sales growth of approximately 10%, up from its previous estimate of a 9% to 10% increase.
Coca-Cola reported a 12% revenue increase in North America, but faced a 4% decline in the Asia Pacific region, driven by weak demand in China and ongoing conflicts in the Middle East. Revenue in Europe, the Middle East, and Africa dropped by 7%. Earlier this month, PepsiCo’s CEO highlighted how price hikes and rising borrowing costs are straining consumer budgets, leading to a cut in their annual sales forecast after disappointing quarterly results. Overall, Coca-Cola’s net revenue rose 0.3% to $11.95 billion, exceeding analysts’ expectations of a 2.62% drop to $11.60 billion.
Here’s a chart summarizing the key information about Coca-Cola’s recent performance and strategies:
| Metric | Value |
|---|---|
| Target for Organic Sales Growth | 10% (up from 9% to 10%) |
| Quarterly Sales Rise | Driven by premium sodas and juices |
| Shares Change (Premarket) | -1.5% |
| Adjusted Profit Growth Forecast | 5% to 6% |
| Average Selling Price Increase | 10% |
| Unit Case Volume Change | -1% |
| Revenue Change (North America) | +12% |
| Revenue Change (Asia Pacific) | -4% |
| Revenue Change (Europe, Middle East, Africa) | -7% |
| Net Revenue | $11.95 billion |
| Analysts’ Expected Revenue | $11.60 billion |
| Competitor Insights | PepsiCo facing budget strain, cut sales forecast |
This chart highlights Coca-Cola’s strategies, market performance, and financial expectations, providing a concise overview of its current situation.
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