The Coca-Cola Company recently reported that its quarterly revenue was higher than expected. She was able to exceed expectations thanks to higher prices for goods and high demand for soft drinks. LBLV analysts spoke in more detail about the giant's report.
Although Coca-Cola has been increasing prices over the past few quarters, consumers dining out and frequenting movie theaters or sporting events have been willing to spend more on the food and drink they love. The trend contrasts with PepsiCo, which said its sales fell for the first time in 14 quarters. The rise in prices led to a reduction in sales volumes by 4%.
In the case of Coca-Cola, sales volumes in individual packages increased by 2%. At the same time, the average cost of selling goods in the fourth quarter increased by 9%. And yet the company expects that its organic revenue will increase weakly, as it fears that the positive effect of increasing prices will soon fade away.
Even Coca-Cola's relatively weak forecast exceeded expectations
The company forecasts that its organic revenues will increase by 6-7% in 2024. Last year, this figure jumped by 12%. The company's CEO noted that in the European and North American regions, the effect of high inflation puts pressure on certain groups of consumers.
And yet, lblv.com experts note that the forecast for Coca-Cola's organic revenue turned out to be better than expected. The company now expects its adjusted profit for the year to grow by 4-5%, while third-party analysts are calling for 4.5%.
The company's revenue increased by 7.4%, reaching $10.95 billion. which exceeds analyst forecasts of $10.68 billion. Its adjusted earnings were $0.49 per share, in line with expectations. Experts note that Coca-Cola's performance turned out to be better than that of PepsiCo, since the former still benefits from the opportunity to increase prices.
Artem Priluchny, financial analyst at LBLV
