The Coca-Cola Company has reported net revenue growth of 5% for its first quarter, driven predominantly by higher prices.
Net revenue increased from $10.49 billion in the year-ago quarter to $10.98 billion. On an organic basis, revenue grew 12%, though operating income declined by 1%.
The first-quarter revenue performance was driven by an 11% growth in price/mix and a 1% growth in concentrate sales.
The beverage giant recorded global unit case volume growth of 3% during Q1, down from 8% during the same period last year.
Developed markets grew mid-single digits, while developing and emerging markets grew low single digits. Growth in developed markets was led by Mexico, Western Europe and Australia, while growth in developing and emerging markets was led by China, India and Brazil.
Developing and emerging markets growth was impacted by the suspension of business in Russia.
Unit case volume declined 3% in Europe, the Middle East and Africa, as “strong growth in Western Europe, Pakistan and South Africa was more than offset by the suspension of business in Russia and the impact of the earthquake in Turkey in February”.
In Latin America, unit case volume grew by 5% with a strong performance across all categories, led by Mexico and Brazil.
Coca-Cola’s North American region’s unit case volume remained even, as growth in sparkling soft drinks and juice, value-added dairy and plant-based beverages was offset by a decline in water, sports, coffee and tea.
Meanwhile, in the Asia-Pacific region, unit case volume grew by 10%, led by China, India and Australia.
The Coca-Cola Company’s chairman and CEO, James Quincey, said: “We are encouraged by our first quarter 2023 results. Our system alignment is stronger than ever, and our networked organisation is allowing us to adapt as needed. We continue to invest for the long term, strengthening our capabilities to drive sustainable value for our stakeholders.”
He continued: “We have the right portfolio, the right strategy and the right execution to deliver in the marketplace. We are confident in our ability to deliver on our 2023 objectives”.
The soft drinks giant aims to work with technology platforms to experiment, learn and drive future results. Coca-Cola said it is the “first company to collaborate with OpenAI and Bain & Company to harness the power of ChatGPT and DALL-E to enhance marketing capabilities and business operations and to build capabilities through cutting-edge artificial intelligence”.
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