Why Coca-Cola Stock Could Struggle in 2024
Coca-Cola (NYSE: KO) and other top consumer food brands have been able to perform well amid inflation as their pricing power has allowed them to simply raise prices and continue to generate revenue growth. But after multiple price hikes, that can start to have a significant effect on consumers.
Although the business is still growing, Coca-Cola could be facing tougher times ahead, and that could be bad news for the stock. Let's evaluate.
In Coca-Cola's most recent quarterly earnings report, for the period ended Sept. 29, the company posted net revenue growth of 8%, with its top line rising to $12 billion. Organically, and without factoring in the impact of foreign exchange and acquisitions or divestitures, revenue was up 11%. Price increases and sales mix were responsible for the vast majority (9 percentage points) of that growth. Sales volume, however, which Coca-Cola refers to as concentrate sales, rose by only 2%.
Source Fool.com
