Coca-Cola CEO says inflation is moderating in most markets after higher prices boost revenue

By omshreeinfotech Feb 13, 2024
Coca-Cola CEO says inflation is moderating in most markets after higher prices boost revenue

Jame Quincey, CEO of Coca-Cola Co., talking on Squawk Box on the WEF in Davos, Switzerland on Jan. 18th, 2023. 

Adam Galica | CNBC

Inflation is moderating in most markets, after a stretch in which the beverage maker relied on value hikes to drive higher revenue, Coca-Cola CEO James Quincey mentioned Tuesday.

Coke reported its fourth-quarter outcomes Tuesday, and mentioned higher prices helped the corporate beat Wall Street’s estimates for its quarterly gross sales. But Coke’s value hikes have slowed from the final two years’ double-digit will increase.

Coke’s total prices had been up 9% in the fourth quarter, however Quincey mentioned that got here from hyperinflation in markets like Argentina. In nearly all of Coke’s markets, customers had been solely paying about 3.5% extra for his or her drinks than they had been a 12 months earlier.

“When you concentrate on 95% of the enterprise, 3.5% on a worldwide foundation is near what we getting previous to Covid, previous to this inflation spike,” Quincey mentioned on CNBC’s “Squawk on the Street.”

The U.S. consumer price index was up 3.1% in January in contrast with the year-ago interval, based on Labor Department knowledge launched Tuesday.

In July, Coke executives mentioned that the corporate was completed elevating prices for 2023. Consumers in Europe and the United States had began switching to cheaper private-label juices and bottled water as a substitute of shopping for its Simply and Smartwater manufacturers.

Quincey additionally mentioned Tuesday that the U.S. client has gone in two totally different instructions. Those with extra disposable revenue are shopping for Coke’s premium drinks, like Fairlife milk, whereas these with tighter budgets are pulling again their spending and shopping for extra worth packs.

Coke’s North American quantity shrank 1% in the quarter consequently.

Shares of Coke fell lower than 1% in morning buying and selling.

Source link

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *