Coca-Cola reported higher-than-expected revenue in the fourth quarter as growth in Mexico, Germany and other markets offset lower demand in the U.S.
Revenue rose 7% to $10.8 billion for the October-December period, the Atlanta beverage giant said Tuesday. That topped Wall Street’s forecast of $10.7 billion, according to analysts polled by FactSet.
Revenue growth will likely moderate this year, Coke said. The company expects full-year organic revenue will grow 6% to 7% this year, down from last year's 12% growth. Coke's revenue got a 10% boost from higher prices last year, but those price increases are expected to moderate along with inflation.
Unit case volumes rose 2% in the quarter, led by sparkling soft drinks, juices and Coca-Cola Zero Sugar. Sports drinks, coffee and tea all saw lower demand.
In North America, unit case volumes declined 1% as growing sales of juice, dairy and Coca-Cola were offset by falling demand for water, sports drinks, coffee and tea. Coke said its prices rose 8% during the quarter. While that was down from the double-digit price increases the company put in place earlier in 2023, Coke has said that higher prices are pinching some consumers and forcing them to trade down to store brands.
Unit case volumes grew in Coke's other global markets.
Net income fell 3% to $1.9 billion, or 46 cents per share. Without one-time items, including restructuring costs, the company earned 49 cents per share. That was in line with Wall Street’s forecast.
Coke shares rose almost 1% in premarket trading.