Unseasonal rains unfavorably impact Coca-Cola’s India business
New Delhi: Unseasonal rains in the June quarter unfavorably impacted The Coca-Cola Company’s business in India but the beverage major kept its growth outlook for the market “intact". “India business was unfavorably impacted by unseasonable rain and cooler temperatures in the quarter. However, the growth outlook remains intact," James Quincey, Chairman and CEO of The Coca-Cola Company said during the company’s post earnings call on Wednesday.
For the three months ended 30 June—the company’s global net revenues grew 6% to $12.0 billion, and organic revenues grew 11%. For full year 2023—the company raised its organic revenue growth project to 8% to 9%. For the rest of the year, the company expects commodity price inflation to be a mid single-digit percentage headwind on comparable cost of goods sold based on the current rates and including the impact of hedged positions, it said.
Meanwhile, despite heavy rains that lashed parts of the country, India led unit case volume growth in the Asia Pacific region, the company said. “Unit case volume grew 2%, driven by growth across most categories. Growth was led by India, China, Thailand and Vietnam," the company said in its earnings statement on Wednesday.
Coca-Cola does not report India numbers separately. In the APAC region, the company gained value share in non-aerated ready to drink beverages, led by share gains in South Korea, India, Australia and Thailand. The company’s management pointed to “strong" demand for its juices in India as well as China during the quarter.
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