USA – The Coca-Cola Company has reported a 6 percent growth in net revenue for the year ended December 31, 2023, with growth in Europe, Middle East & Africa (EMEA), Latin America, and Asia Pacific. 

During the financial year, revenue grew to US$45.8 billion, and organic revenues (non-GAAP) grew 12 percent, driven by a 10 percent growth in price/mix and a 2 percent growth in concentrate sales. 

The revenue growth benefited from higher prices in 2023, but the company said that was partly due to hyperinflationary conditions in a handful of markets like Argentina. The company expects full-year organic revenue to grow at a more moderate pace of 6 percent to 7 percent this year, down from last year’s 12 percent growth. 

“We anticipate hyperinflationary pricing will continue to play a role in 2024 but will moderate throughout the year,” said Coca-Cola Chief Financial Officer, John Murphy. 

For the full year, the operating margin was 24.7 percent versus 25.4 percent in the prior year, primarily driven by strong topline growth, partially offset by an increase in marketing investments versus the prior year, as well as currency headwinds. 

For the full year, unit case volume grew by 2 percent. Developed markets grew by 1 percent, driven by growth in Mexico and Germany. Developing and emerging markets grew by 2 percent, driven by growth in India and Brazil, partially offset by the suspension of business in Russia in 2022. 

The sparkling drinks category witnessed a 2 percent growth primarily driven by growth in Latin America and Asia Pacific. 

In North America, unit case volumes declined by 1 percent as growing sales of juice, dairy and plant-based beverages and Coca-Cola were offset by falling demand for water, sports drinks, coffee, and tea. The company said its North American prices rose by 8 percent in both the fourth quarter and the full year. 

Chairman and CEO James Quincey said price increases have clearly squeezed some consumers who are going out less often and buying more drinks for the home. 

But he said Coca-Cola continues to see strong buying power from other consumers, who are opting for higher-priced beverages like Fairlife milk, Core Power protein shakes, and Simply juices. 

“There’s clearly multiple things going on in the landscape in terms of categories and price points, and we’ve been working to address both ends of those,” Quincey said. 

Unit case volumes rose in Coke’s other global markets: EMEA by 1 percent, Latin America by 4 percent, and Asia Pacific by 2 percent. The company said it did see some slowdown in demand due to the war in the Middle East that impacted other companies like Starbucks and McDonald’s. 

During the year, the company strengthened its portfolio with ventures in the low alcohol ready-to-drink cocktail category. In March, Coca-Cola collaborated with Jack Daniel’s, a brand of Brown Forman Corp., to launch Jack Daniel’s & Coca-Cola RTD. 

Recently, the company teamed up with Pernod Ricard to produce Absolut Vodka & Sprite aiming to leverage growth in the RTD sector which has continued to gain traction with younger consumers. 

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