According to the company, growth in Brazil and India helped emerging and developing markets expand by 2% last year, partly offsetting the company’s decision by 2022 to cease operations in Russia.
Coca-Cola, the world’s largest beverage maker, said it would reinvest a significant portion of its capital investment into expanding operations in India and American dairy brand Fairlife.
During Tuesday’s fourth-quarter and full-year earnings call, Coca-Cola Chairman and Chief Financial Officer John Murphy said, “The driving force behind Fairlife (the global dairy business) is our India business, which was both in 2023, a strong, ” estimate for the company’s expected increased capital investment.”
Our existing balance sheet strength and underlying cash flows provide us with significant flexibility to spend in our business, drive growth and return capital to our shareholders. “Capacity building for Fairlife and our India business, both of which grew strongly in 2023 , are key to our capital investment growth expectations,” Coca-Cola Co. said in a statement. Chairman and Chief Financial Officer John Murphy said Tuesday during the company’s fourth quarter and full-year 2023 earnings call.
According to his forecast, the company will generate about $9.2 billion in free cash flow by 2024, with about $11.4 billion from operations and a $2.2 billion cut in capital expenditures.
According to the company, growth in Brazil and India helped developing and emerging markets expand by 2% in 2023, offsetting the company’s 2022 decision to suspend operations in Russia.
The volume of unit cases worldwide increased by 2% during the quarter and 2% overall. The increase in net revenues to $45.8 billion was driven by a 2% increase in concentrate sales and a 10% gain in price-mix, while organic revenues increased by 12%.
Unit case volume increased during the quarter by 2%. Developed markets remained flat as reductions in Chile and the US were offset by increases in Mexico and Germany. Brazil and India’s growth propelled the 4% rise in developing and emerging markets. Unit case volume increased by 2% in the entire year. Germany and Mexico’s development propelled the 1% growth in developed markets. The company stated in its earnings announcement that “developing and emerging markets grew 2%, driven by growth in India and Brazil, partially offset by the suspension of business in Russia in 2022.”
The corporation increased its value share in all non-aerated, ready-to-drink beverages in 2023, with increases in its share coming primarily from South Korea, Japan, the Philippines, India, and the Philippines.
The large beverage company has increased its capacity in India. The Coca-Cola Company’s bottling affiliate, Hindustan Coca-Cola Beverages Pvt. Ltd. (HCCB), announced earlier this year that it was constructing multiple new plants in Telangana and Maharashtra. HCCB declared in December that it would invest ₹3,000 crore to build an aerated drink and juice facility in Gujarat. HCCB, which has 16 active facilities, is the biggest bottler of Coca-Cola in India.
Coca-Cola collaborates with bottling companies that produce and promote its drinks in specific areas. It operates 54 factories in India through 11 bottlers.
