Coca-Cola managed to increase sales, profits and market share in an almost complete 2023 for the company.
According to the accounts published this Tuesday by the Atlanta-based soft drink giant, the group's annual turnover amounted to 45,754 million dollars, with a growth of 6%, somewhat weighed down by the impact of exchange rates, while Profit improved 12%, to 10,714 million dollars.
The company has so far been able to combine the increase in sales volume with the increase in prices in an inflationary context in which the prices of raw materials and other costs have also increased.
The group is already recording a decrease in input and freight costs from their pandemic peaks.
The company has told the US Securities and Exchange Commission (SEC) that it expects organic revenue growth of 6% to 7%, a figure that exceeds what the market expected.
However, the actual sales figure will be weighed down by a negative currency effect of 2% to 3%, according to its forecasts, in addition to a negative effect of 4% to 5% from acquisitions, divestitures and structural changes, of So real income growth is in question.
With all this, Coca-Cola expects to increase comparable earnings per share of 4% to 5%, weighed down by a currency impact of 4 to 5 points.
The group's CEO, James Quincey, will comment on the results at a conference with analysts this Tuesday.
The company expects to generate free cash flow of approximately $9.2 billion through cash flow from operations of approximately $11.4 billion, less investments of approximately $2.2 billion.
The figure does not include possible payments related to ongoing tax litigation with the US Treasury.
The company was recently defeated in court in a major case whose potential impact exceeds $14 billion.
Quarterly profit falls
In the fourth quarter, net income grew 7%, to $10,849 million.
Organic revenue increased 12%, driven by 9% growth in price/mix and 3% growth in concentrate sales.
The quarter included an additional day, providing a one-point boost to revenue growth.
For the year as a whole, organic revenues grew 12%, driven by 10% growth in price/mix and 2% in concentrate sales.
The company improved its profitability thanks to revenue growth for the year as a whole.
In the fourth quarter, profit fell 3%, to $1,973 million, due to non-recurring results and the currency impact.
What the company calls comparable earnings per share came in at $0.49, as the market expected.
Both in the quarter and for the year as a whole, the company gained value share in total ready-to-drink non-alcoholic beverages.
Coca-Cola, whose brands also include Fanta, Powerade and Minute Maid, is preparing to launch its first new permanent flavor in several years, a raspberry-flavored drink called Coca-Cola Spiced.
PepsiCo, maker of Gatorade, Mountain Dew and Frito-Lay snacks, last week reported missed revenue and volume declines at its North American food and beverage units.
Category growth is normalizing as consumer behavior returns to pre-pandemic normality, explained Spanish Ramón Laguarta, CEO of the company.
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