Bottles of Coca-Cola are displayed in San Anselmo, California, on April 24, 2023.
Justin Sullivan | Getty Images
Coca-Cola on Tuesday posted quarterly earnings that met expectations and sales that topped estimates, as higher prices helped the beverage maker overcome a volume decline in North America.
Here’s what the corporate reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly often called Refinitiv:
- Earnings per share: 49 cents adjusted vs. 49 cents expected
- Revenue: $10.85 billion vs. $10.68 billion expected
Shares of the corporate rose lower than 1% in premarket trading.
Coke reported fourth-quarter net income of $1.97 billion, or 46 cents per share, down from $2.03 billion, or 47 cents per share, a yr earlier.
Excluding items, the corporate earned 49 cents per share.
Net sales rose 7% to $10.85 billion. Coke’s organic revenue, which strips out acquisitions and divestitures, climbed 12% within the quarter.
Coke reported unit case volume growth of two% for the quarter. The metric excludes pricing and foreign currency.
Nonetheless, North American volume shrank 1%, as demand for Coke’s water, sports drinks, coffee and tea fell. For comparison, rival PepsiCo saw volume for its North American beverage unit fall 6% within the fourth quarter. Pepsi executives said high borrowing costs and lower personal savings squeezed consumers’ budgets, leading shoppers to hunt down private-label options or smaller pack sizes.
For 2024, Coke is forecasting organic revenue growth of 6% to 7% and a rise in comparable earnings per share of 4% to five%. The corporate expects that foreign exchange rates will weigh on each its earnings and revenue for the total yr.
Trying to the primary quarter, Coke is anticipating a 4% headwind from currency exchange rates on its comparable revenue. The corporate also expects foreign exchange to slow its earnings per share growth, and anticipates an 8% hit from currency changes throughout the period.
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