Coca-Cola Aims for Higher Sales Forecast in 2024

(Reuters) – Coca-Cola is striving to reach the upper end of its organic sales forecast for 2024. Increased demand for its higher-priced sodas and juices in the U.S. was pivotal in reporting an unexpected rise in quarterly sales on Wednesday.

However, shares of Coca-Cola (NYSE:KO) fell 1.5% in premarket trading as the company reaffirmed its annual adjusted profit growth forecast to be between 5% and 6%, despite price hikes.

Coca-Cola is experimenting with various pack sizes to stimulate growth. In the U.S., it has introduced 12-ounce slim cans to attract budget-conscious customers, alongside launching reformulated variations of Sprite and Fanta in India and South Korea.

In the third quarter, the average selling price increased by 10%, while unit case volumes saw a 1% decline. The company anticipates annual organic sales to grow about 10%, which is an improvement from the previous forecast of a 9% to 10% rise.

In Europe, Coca-Cola is investing heavily in sponsoring music festivals and sporting events, such as the Euro 2024 Football Championship and the Paris Olympics, to engage with younger audiences.

Revenue in North America rose by 12%, but the Asia Pacific region experienced a 4% decline. A weak demand in China and ongoing conflicts in the Middle East have contributed to volume declines in those regions, with revenue in Europe, the Middle East, and Africa dropping by 7%.

Earlier this month, PepsiCo (NASDAQ:PEP) CEO Ramon Laguarta noted that price increases and borrowing costs were affecting consumer budgets, leading the Frito-Lay chips maker to reduce its annual sales forecast after reporting quarterly revenue that fell short of expectations.

Coca-Cola’s net revenue rose by 0.3% to $11.95 billion, contrary to analysts' expectations of a 2.62% decline to $11.60 billion, according to data compiled by LSEG.