US – Coca-Cola Consolidated, the largest Coca-Cola bottler in the United States, has reported a revenue of US$1.71 billion in Q3 2023, a 5% increase from 2022 with nine-month sales increasing 9% to US$5.02 billion.
The organization recorded increased growth in sales within the club and value channel stores, while sales growth in larger retail stores declined.
Gross profit for the quarter amounted to US$661.6 million, a 7% increase from Q3 2022. Gross profit for the nine-month period was $1.96 billion, a 17% increase from the same period in 2022.
The independent bottler reported $216 million in income from operations for Q3 2023, up $26 million from the same period in 2022.
Nine-month income from operation, on the other hand, amounted to US$656 million, a 40% increase from the same period in 2022.
The company attributes the increase in net sales to its adopted strategy of offering consumers a variety of packages at affordable prices across its portfolio.
The Charlotte, North Carolina based company noted that this strategy enabled it to differentiate from other competitors in the marketplace driving their solid volume performance.
Increased product prices also played a big role in driving higher profit margins.
“I am pleased to report another solid quarter of operating performance as we continue to leverage the benefits of our strong brands, disciplined pricing, and overall operating expense management,” said J. Frank Harrison, III, Chairman and Chief Executive Officer.
“We also achieved a significant milestone in our balance sheet management this quarter, as our cash on hand exceeded our outstanding debt balance, making us net debt free for the first time in almost 40 years.”
Coca-Cola India reports more than double profits
Meanwhile, Hindustan Coca-Cola Beverages (HCCB), the Indian bottling arm of the beverage maker Coca-Cola reported more than double increase in profit in FY23, Rs 809.32 (US$1.1 million) crore up from Rs 377.14 (US$0.5 million) Crore reported in FY22.
The company also achieved a 40% increase in sales in FY23 to record Rs12,840.2 Crore (US$18.5 million), up from Rs 9,174.74 Crore (US$13.2 million) recorded in FY2022 despite a challenging operating environment marked by inflationary headwinds and geopolitical pressures.
“The structural drivers of long-term growth such as rising disposable incomes and consumer awareness, low levels of penetration of consumer goods, favourable demographics, increasing urbanisation, and growing preference for trusted brands are firmly in place,” HCCB said in a statement.
“Your company will continue to focus on the new opportunities like e-commerce, grocery, pharmacy, etc. to grow organically and inorganically in line with its vision and mission.”
HCCB manufactures and sells 60 different products across seven categories such as Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, SmartWater, Kinley, Limca, and Fanta in 22 states and serves 25 lakh retailers.
