The world’s largest beverage company Coca-Cola on Tuesday told investors that it continued to bet on India despite weather-related uncertainty and heightened competition in the market. The comments were made following its December quarter results announced on Tuesday.
The company, which follows a January-December accounting year, also said that it was increasing investments in digital platforms, AI-led tools and market expansion in India in its quest for growth.
“India is a long-term contributor to volume growth. So, that needs to build back and we would expect that to ramp up during the year,” James Quincey, chairman and chief executive officer of The Coca-Cola Company, told investors.
Coco-Cola reports a 6% decline in unit case volumes
The company reported a 6% decline in unit case volumes during the December quarter, largely due to lower volumes in India and the impact of refranchising bottling operations, analysts said.
What did Henrique Braun say?
Henrique Braun, executive vice president and chief operating officer (incoming chief executive officer) at the Atlanta-based beverage major, told investors that the company had been investing with its partners ahead of the curve.
“We will continue to invest because this is a market for the future. We are still building the industry there and that is why we need to continue to invest ahead of the curve because, really, in these markets you can actually continue to push forward,” he said.
At a global level, unit case volume grew 1% in the fourth quarter and was flat for the full year. Net revenue increased 2% both for the quarter and the full year. Operating income declined 32% in the fourth quarter, while it rose 38% for the full fiscal year, reflecting one-time gains and structural changes.