Home Mutual Funds Coca-Cola’s Q4 Sales Pop as Higher Prices Offset Lower Volume in North America

Coca-Cola’s Q4 Sales Pop as Higher Prices Offset Lower Volume in North America

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Key Takeaways

  • Coca-Cola reported better-than-expected sales in Q4 2023.
  • Sales grew 7% from a year ago to $10.85 billion, driven by higher prices.
  • Adjusted earnings per share of 49 cents met analyst expectations.
  • The company expects to grow its organic revenue by 6%-7% and adjusted EPS by 4%-5% in 2024.

The Coca-Cola Company (KO) handily beat analyst estimates for sales in the fourth quarter. The company’s shares rose roughly 1% in pre-market trading Tuesday.

Net income for the quarter fell about 3% from a year ago to $1.977 billion or 46 cents per diluted share. Excluding certain items and currency impact, adjusted earnings per share came in at 49 cents per diluted share, in line with analyst estimates compiled by Visible Alpha.

Sales revenue rose about 7% to $10.85 billion, driven by higher prices. Net of currency impact, organic revenues grew 12% on the back of 25% growth in Europe, Middle East, & Africa; 23% in Latin America; and 13% in Asia Pacific.

Unit case volume, a measure of the volume of beverages sold by Coca-Cola, increased the most in the Latin America market. In North America, higher prices helped offset the impact of lower sales volume.

The company expects to grow its organic revenue by 6%-7% and adjusted EPS by 4%-5% in 2024, but said it faces a 4% currency headwind in the first quarter of the year.

Q4 2023 Analyst Estimates for Q4 2023 Q4 2022
Revenue $10.85 billion $10.76 billion $10.12 billion
Adjusted Earnings Per Share 49 cents 49 cents 45 cents
Net Income $1.97 billion $2.15 billion $1.94 billion

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