Coca-Cola, the renowned beverage maker, has reported its fourth-quarter earnings, meeting expectations and surpassing sales estimates despite a decline in volume in North America. The company’s ability to overcome this setback can be attributed to higher prices, which helped offset the decline.
In terms of earnings per share, Coca-Cola reported 49 cents adjusted, in line with the 49 cents expected by Wall Street analysts. Additionally, the company’s revenue reached $10.85 billion, surpassing the estimated $10.68 billion. These positive results led to a slight increase of less than 1% in the company’s shares during premarket trading.
Comparing the fourth quarter of 2023 to the previous year, Coca-Cola’s net income decreased from $2.03 billion to $1.97 billion, resulting in a decline of one cent per share. However, when excluding certain items, the company’s earnings per share remained steady at 49 cents.
One of the key factors contributing to Coca-Cola’s success was its net sales growth of 7%, reaching $10.85 billion. Moreover, the company’s organic revenue, which excludes acquisitions and divestitures, experienced an impressive 12% increase during the quarter.
While overall unit case volume grew by 2% for the quarter, there was a notable decline of 1% in North American volume. This decrease can be attributed to a drop in demand for Coca-Cola’s water, sports drinks, coffee, and tea products during the period.
Looking ahead to 2024, Coca-Cola is optimistic about its growth prospects. The company forecasts organic revenue growth between 6% and 7%, accompanied by a 4% to 5% increase in comparable earnings per share. However, it is important to note that foreign exchange rates are expected to have a negative impact on both earnings and revenue for the full year.
In the first quarter of 2024, Coca-Cola anticipates a 4% headwind from currency exchange rates on its comparable revenue. Furthermore, the company expects foreign exchange to impede its earnings per share growth, with an anticipated 8% hit from currency changes during the period.
Despite the challenges faced in North America, Coca-Cola’s ability to meet earnings expectations and surpass sales estimates demonstrates its resilience and adaptability. With a positive outlook for the future, the company remains committed to delivering strong financial performance and continued growth in the global beverage market.
