Coca-Cola’s (NYSE:KP) fourth-quarter income exceeded estimates, thanks to an unexpected rise in volumes. Shares in the drinks group rose over 3% in early trading on Tuesday.
The company has been rolling out slimmer 12-ounce cans in the U.S. to try and boost sales, in reaction to cost-conscious shoppers being much more caution recently around their spending on soft drinks, in order to save their money for pricier purchases.
This strategy has helped support U.S. demand for Coca-Cola’s more expensive offerings such as sodas and juices.
North America unit case volume increased by 1% for the three months ended on December 31, driven by rising demand for sparkling flavors, juice, value-added dairy offerings, plant-based drinks and Coca-Cola’s eponymous brand, the firm said. Reported net revenues in the region climbed by 16%.
Still, the strength was offset by flat volumes in Europe, the Middle East, and Africa. Coca-Cola has previously flagged that conflicts in the Middle East in particular were weighing on supplies.
Globally, unit case volume expanded by 2%, compared with expectations that the figure would contract 0.21%. Coca-Cola noted that China, which has been hit in past quarters by sluggish consumer demand during a slow post-pandemic economic recovery, helped lead the number higher.
Comparable earnings per share for the quarter grew by 12% versus the year-ago period to $0.55, topping Bloomberg consensus estimates of $0.52. Quarterly revenue came in at $11.50 billion, up by 6% year-on-year.
Coca-Cola’s prediction for the 2025 fiscal year is that the company will organic revenue growth of 5% to 6%, compared to projections of 7.09%. Comparable earnings per share are also seen growing by 2% to 3% from $2.88 in 2024, indicating a range of $2.94 to $2.97. Wall Street forecasts had called for $2.95.