Coca-Cola reports 3% growth in revenue in Q1 2024 despite operational challenges 

US – Coca-Cola, the global beverage giant, has announced a notable 3% growth in net revenues for the first quarter of 2024, signaling a positive start to the fiscal year despite facing operational challenges. 

The Atlanta-based company reported an increase in net income, revenue, and volume, prompting an update to its fiscal-year guidance for 2024.  

Despite incurring charges totalling over US$1.5 billion related to the acquisition of fairlife, LLC and the BodyArmor trademark, Coca-Cola managed to exceed expectations with adjusted earnings per share (EPS) of US$0.72, surpassing the consensus estimate of US$0.70.  

Revenue for the quarter also exceeded forecasts, reaching US$11.3 billion compared to the anticipated US$11.02 billion. 

The company’s net revenues witnessed a commendable 3 percent growth compared to the same quarter last year, with organic revenues experiencing an impressive 11 percent increase.  

This growth was driven by a 13 percent rise in price/mix, offsetting a 2 percent decline in concentrate sales. Coca-Cola’s global unit case volume also saw a modest 1 percent growth, although operating income declined by 36 percent due to charges related to fairlife and BODYARMOR trademarks, as well as currency headwinds. 

James Quincey, Chairman and CEO of The Coca-Cola Company, expressed optimism about the company’s performance, stating, “We’re encouraged by our start to 2024, delivering another quarter of volume, topline and earnings growth amidst a dynamic backdrop.” 

In terms of product performance, unit case volume in sparkling soft drinks increased by 2 percent, driven by growth in Coca-Cola and Coca-Cola Zero Sugar. However, volume in water, sports, coffee, and tea experienced a 2 percent decline, with notable decreases in sports drinks and coffee.  

Despite these challenges, North America witnessed sequential improvement in volume, particularly in juice, value-added dairy, and plant-based beverages. 

Meanwhile, Europe, Middle East, and Africa saw a 2 percent growth in unit case volume, with Nigeria, Germany, and South Africa leading the way.  

Coca-Cola also gained value share in total NARTD (Non-Alcoholic Ready-to-Drink) beverages, driven by share gains in key markets such as Nigeria, South Africa, and France. 

Looking ahead, Coca-Cola has updated its full-year 2024 guidance, expecting organic revenue growth of 8 percent to 9 percent.  

However, the company anticipates currency headwinds that could impact comparable net revenues and EPS growth.  

Despite these challenges, Coca-Cola remains committed to delivering value to its shareholders, projecting a significant growth in comparable currency-neutral EPS and free cash flow of approximately US$9.2 billion for the full year. 

 

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