Coca-Cola's Bottom Line Bubbles Up, Company Raises FY24 Revenue Projections
Portfolio Pulse from Shivani Kumaresan
Coca-Cola Company (NYSE:KO) reported a 3% year-on-year sales growth for the first quarter of FY24, reaching $11.3 billion and surpassing analyst expectations. The company saw a 2% decline in concentrate sales but a 13% increase in price/mix, with unit case volume growing by 1%. Organic revenues rose by 11%, with significant growth in Europe, Middle East, and Africa (15%) and North America (7%). Gross profit increased by 6% to $7.065 billion, though operating income fell by 36% to $2.14 billion. Adjusted EPS of $0.72 beat estimates, and operating cash flow saw a significant increase. Coca-Cola raised its FY24 organic revenue growth outlook to 8%-9% and its comparable currency neutral EPS growth outlook to 11%-13%. Despite the positive financial performance and outlook, KO shares dropped slightly by 0.18% in premarket trading.
April 30, 2024 | 1:08 pm
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Coca-Cola reported strong Q1 FY24 results with sales growth and raised FY24 forecasts, but shares fell slightly in premarket trading.
Despite Coca-Cola's positive earnings report and optimistic outlook for FY24, the slight premarket drop in KO shares suggests that market reactions can be influenced by factors beyond just earnings results, such as broader market trends or investor expectations. The short-term impact on KO's stock price is negative, reflecting immediate market response rather than the company's solid financial performance.
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