Coca-Cola (KO.N) is aiming to hit the higher end of its organic sales forecast for 2024 as growing demand for its higher-priced sodas and juices in the US helped it post a surprise rise in quarterly sales on Wednesday.
Shares of the company, however, fell 1.5 per cent in premarket trading as Coca-Cola reiterated its growth forecast for annual adjusted profit to be between 5 per cent and 6 per cent despite price hikes.
Coca-Cola has been experimenting with pack sizes to drive growth. It offered 12-ounce slim cans to attract customers with tight budgets in the US, while launching reformulated versions of its Sprite and Fanta in India and South Korea.
Its average selling price rose 10 per cent in the third quarter, while unit case volumes fell 1 per cent. It expects annual organic sales to grow about 10 per cent compared with a prior view of 9 per cent to 10 per cent rise.
In Europe, the company has been spending heavily to sponsor music festivals and sporting events such as the Euro 2024 Football Championship and the Paris Olympics to attract youth.
Revenue rose 12 per cent in North America, while in the Asia Pacific region it dropped 4 per cent. Weak demand in China and the conflict in the Middle East have resulted in volumes declines in the regions. Coca-Cola’s revenue in Europe, the Middle East and Africa fell 7 per cent.
Earlier this month, rival PepsiCo (PEP.O) CEO Ramon Laguarta flagged that price increases and borrowing costs were hurting consumer budgets. The Frito-Lay chips maker cut its annual sales forecast after posting quarterly revenue below expectations.
Coca-Cola’s net revenue rose 0.3 per cent to $11.95 billion. Analysts had expected a 2.62 per cent drop to $11.60 billion, according to data compiled by LSEG.
