Coca-Cola reported quarterly revenue that above analysts’ estimates on Tuesday, due to increasing drink prices.
However, increasing prices have reduced demand for Coke products such as Simply Orange Juice and Fairlife Milk. Coke reported a 1% drop in unit case volume in the fourth quarter, after adjusting for currency and pricing changes.
The large beverage firm announced net income attributable to the company for the fourth quarter of $2.03 billion, or 47 cents per share, a decrease from $2.41 billion, or 56 cents per share, in the same period last year.
In its Europe, Middle East, and Africa business, unit case volume decreased 5% while being unchanged in North America. In reaction to skyrocketing prices, CEO James Quincey stated last quarter that European customers were adjusting their behavior.
Although consumer demand is plainly declining, the European economy appears to be avoiding a technical recession, he said on Tuesday. “I think that’s likely to continue for the rest of the year.”
Additionally, he said that Coca-U.S. Cola’s company is still doing well and that this year’s sales would probably increase when China reopens.
To appeal to a broad spectrum of customers, the Atlanta-based business has been employing a two-pronged strategy. It has attempted to provide more economical solutions aimed at lower-income clients in addition to boosting costs. Additionally, Quincey stated that the business must “earn the right to take price.”