Coca-Cola records double-digit volume growth in India in third quarter

The Coca-Cola Company witnessed a "double-digit volume and top-line growth" and highest gains in value share over the past three years in the September quarter, said its Chairman and CEO James Quincey on Tuesday.

The company generated 2.6 billion transactions in India in the third quarter of 2023, helped by affordable offerings and increasing its sales network in the far rural regions, Quincey said in an earnings call.

"In India, we delivered double-digit volume and top-line growth, which resulted in the highest value share gains over the past three years. We are winning in the market by generating 2.6 billion transactions at affordable price points and driving availability across rural regions," he said.

The Indian market also contributed to the growth of Coca-Cola's overall growth from the Asia Pacific region and the emerging market.

In the June quarter, the Coca-Cola Company's India business was impacted due to unseasonal rainfall during the summers in the country, when sales of fizz-based drinks are at their peak.

For its Bottling Investments Group (BIG) -- an in-house unit handling its bottling operations in some countries -- India also drove its global growth in the segment.

"Unit case volume grew 2% primarily driven by growth in India and the Philippines, partially offset by the impact of refranchising bottling operations," it said.

In the Asia Pacific market, Coca-Cola's unit case volume was "even" as growth in Trademark Coca-Cola and other beverage categories was offset by a decline in water, the company said.

"Growth in India and the Philippines was offset by declines in China and Indonesia," it said.

The company gained value share in total non-alcoholic-ready-to-drink (NARTD) beverages in the Asia Pacific market, led by share gains in India, the Philippines, South Korea and Japan, the earnings statement added.

Unit case volume means the number of unit cases of company beverages directly or indirectly sold by the company and its bottling partners to customers.

The Atlanta-headquartered company reported an 8.04% growth in its consolidated net operating revenue to USD 11.95 billion.

"Revenue performance included 9% growth in price/mix and 2% growth in concentrate sales. Concentrate sales were in line with unit case volume," it said.

Its unit case volume grew 2% during the quarter.

"Developed markets grew 2%, driven by growth in Mexico and Japan. Developing and emerging markets also grew 2% driven by growth in India and the Philippines," said the earning statement said.

Quincey said the company has delivered an "overall solid quarter".

"Our leading portfolio of brands, coupled with an aligned and motivated system, positions us to win in the marketplace today, while also laying the groundwork for the long term," he said.

The company has raised its full-year topline and bottomline forecast in light of its year-to-date performance, Quincey added.

"The company expects to deliver organic revenue (non-GAAP) growth of 10-11%," it added.

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