Coca-cola
Coca-Cola exceeds Q1 projections, anticipates 9% organic revenue growth for 2024
Coca-Cola Co. revised its 2024 forecast upward following a sterling first-quarter performance that surpassed Wall Street’s projections.
Organic revenue, excluding currency fluctuations and acquisitions, surged by 11% during the quarter, exceeding analysts’ expectations.
According to Bloomberg News, the company, known for brands like Minute Maid juices and Topo Chico mineral water, now anticipates this metric to expand by up to 9% for the entire year, compared to the previous range of 6% to 7%, and surpassing the average estimate.
At the same time, unit case volume missed estimates, with water, sports drinks, coffee and tea falling for the quarter.
Higher input costs
Coca-Cola said its prices, which have risen steadily in recent quarters amid higher input costs, continued to climb.
The company hiked prices across a mix of its products 13% in the quarter — more than the increase expected by the market.
The shares fell 0.2% at 7:18 a.m. in early New York trading.
Initial public offering (IPO)
Coca-Cola had said it is gearing up for a potential initial public offering (IPO) of its African bottling business as soon as next year, Bloomberg News reported on Monday, citing people familiar with the matter.
It may seek a valuation of more than $8 billion for the business, the report said, adding that the deliberations were at an early stage and the offering details could change.
Coca-Cola declined to comment on the news, when contacted by Reuters.
Last year, the company had noted during its third-quarter earnings it remains committed to listing Coca-Cola Beverages Africa (CCBA) as a public company once market conditions become more favorable.
The company in 2021 had said it was planning to list CCBA in 18 months, with primary listing in Amsterdam and a secondary listing on the Johannesburg Stock Exchange (JSE).
In 2022, Coca-Cola delayed plans of an estimated $3 billion IPO of CCBA, due to turbulence in the market mainly rising from the Russia-Ukraine war, which had resulted in shaky investor confidence and a dry spell for IPOs globally.
If listed, the flotation of the division would have been the biggest on the JSE since at least 2016 and a major boost for the flagging index.
