Coca-Cola Company on Tuesday that India and Brazil drove beverage volume growth in the developing and emerging markets in 2023.
James Quincey, Chairman and CEO of the Coca-Cola Company, stated during the earnings call on Tuesday that the India business “experienced a robust growth in 2023,”
In the December quarter, the company witnessed a 7 per cent increase in net revenue, reaching USD 10.8 billion, with organic revenues (non-GAAP) experiencing a notable growth of 12 per cent. The full-year 2023 also saw a positive trajectory, with net revenues climbing by 6 per cent to USD 45.8 billion.
Coca-Cola’s unit case volume for 2023 exhibited a 2 per cent growth, where developed markets expanded by 1 per cent, propelled by notable growth in Mexico and Germany.
“Developing and emerging markets grew 2 per cent, driven by growth in India and Brazil, partially offset by the suspension of business in Russia in 2022,” the Atlanta-headquartered company said in its earnings statement.
During the quarter, “developing and emerging markets grew 4 per cent, driven by growth in Brazil and India”.
The term “unit case volume” refers to the number of units of beverages directly or indirectly sold by the company and its bottling partners.
As the fifth-largest market for The Coca-Cola Company, India played a significant role in contributing to the company’s overall growth from both the Asia Pacific region and the emerging market segment. In the December quarter, Coca-Cola experienced a 2 per cent growth in unit case volume in the Asia Pacific region.
This was “primarily driven by growth in juice, value-added dairy, and plant-based beverages and sparkling flavours. Growth was led by India and China”, it said.
For the year, “the company gained value share in total NARTD beverages (non-alcoholic-ready-to-drink), led by share gains in India, the Philippines, South Korea, and Japan”, it added.
However, in the December quarter, Coca-Cola observed a decline in unit case volume from its bottling investments in India. This dip is attributed to the ongoing divestment of its business in the country. The bottling investments group reported a 1 per cent decrease in unit case volume for the quarter, with growth in India and the Philippines offset by the impact of refranchising bottling operations.
Coca-Cola’s Indian bottling arm, Hindustan Coca-Cola Beverages (HCCB), recently transferred bottling operations in Rajasthan, Bihar, the Northeast, and parts of West Bengal to existing partners in those regions.
Looking ahead, Coca-Cola has set expectations for 2024, anticipating organic revenue (non-GAAP) growth of 6-7 per cent.
“As we begin a new year, we are confident that our all-weather strategy, powerful portfolio and harmonised system will continue to create value for our stakeholders in 2024 and for the long term,” said Quincey.
