Atlanta
Coke keeps its fizz: Coca-Cola reported better than expected revenue in the fourth quarter as higher prices for its products helped the drinks giant overcome a lower volume of sales in North America, says Amelia Lucas for CNBC. Net sales by value rose 7% to $10.8bn, beating estimates of $10.7bn, although net income fell slightly to almost $2bn, or 46 cents per share. Demand for Coca-Cola’s bottled water, sports drinks, coffee and tea all fell as household budgets continue to be squeezed. The decline was not as severe in rival PepsiCo’s beverage business, which saw volume sales fall 6% in the fourth quarter from a year earlier. More globally, the Israel-Hamas war has caused supply-chain issues and depressed demand.
For 2024, Coca-Cola expects 6% to 7% organic sales growth (which strips out acquisitions), higher than Pepsi, which forecasts organic growth of at least 4%. Coca-Cola’s steady performance underscores its appeal to investors, says Aaron Back in The Wall Street Journal. Its shares are not a bargain at 21.1 times forward
