Coca-Cola's Revenue and Sales Growth in the Fourth Quarter

Coca-Cola has reported encouraging performance in the fourth quarter, exceeding expectations with improved sales figures across various markets including the United States and China.

The company, based in Atlanta, experienced a revenue increase of 6%, totaling $11.5 billion. This result surpassed analysts' predictions, who had forecasted revenues of about $10.68 billion, according to data gathered by FactSet.

Analysts anticipated a modest increase in Coke's unit case volumes, projecting they would rise by less than 1%. However, the actual figures showed a 2% increase in unit case volumes, marking a turnaround from a 1% decline experienced in the previous third quarter.

One of the standout performers in Coca-Cola's product lineup was Coca-Cola Zero Sugar, which enjoyed a global sales boost of 13% in volume during the fourth quarter. Additionally, product segments including water, coffee, tea, and sports drinks showed a 2% increase in volumes. On the other hand, sales of juice, dairy, and plant-based drinks experienced a slight decline of 1%.

In terms of pricing, Coca-Cola introduced a 9% price hike during the quarter. This increase can be attributed partly to high inflation rates in markets such as Argentina and also due to a shift towards a higher mix of premium beverages, such as Fairlife milk and Topo Chico sparkling water. Last fall, the company initiated efforts to make its drinks more accessible by offering smaller pack sizes and refillable options.

Net income for Coca-Cola rose by 11% to reach $2.2 billion for the period from October to December. Adjusted earnings per share, which accounted for one-time items, stood at 55 cents, outperforming analyst estimates of 52 cents.

Looking ahead, Coca-Cola anticipates organic revenue growth between 5% and 6% for 2025. The company reported an impressive organic revenue growth of 12% for the previous year.

CocaCola, Revenue, Sales