Friday, June 14, 2024

Coca-Cola gains US$ 290 million from India by divesting its bottling operations

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The Coca-Cola Company has generated USD 290 million (around INR 2,420 crore) from India in the March quarter through the strategic move of refranchising its bottling operations to its established bottlers in three significant markets.

Earlier this year, in January, Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s bottling arm in India, announced its decision to divest company-owned bottling operations in Rajasthan, Bihar, Northeast India, and certain regions of West Bengal to its current bottlers.

The company reported net gains of USD 599 million and USD 293 million from the refranchising of its bottling operations in the Philippines and specific territories in India, respectively.

Also, in the Indian market, the Coca-Cola company reported growth in unit case volume during the first quarter of 2024, according to its financial statement. However, in the Asia Pacific market zone, which includes India, unit case volume declined by 2 percent in the first quarter due to decreases in water, sports drinks, coffee, and tea.

India stands as the fifth largest market for the Atlanta-based company, renowned for its brands such as Coca-Cola, Coke, Thums UP, Maaza, Sprite, Fanta, Minute Maid, and more, operating extensively within the nation

On a global scale, the Coca-Cola company experienced a 1 percent increase in unit case volume in 2024.

In the March quarter, The Coca-Cola Company’s net revenue increased by 2.9 percent to USD 11.3 billion, with organic revenues (non-GAAP) experiencing an 11 percent growth.

James Quincey, Chairman and CEO, Coca-Cola Company, expressed, “We are pleased with our performance in early 2024, achieving growth in volume, revenue, and earnings despite a challenging environment.”

In terms of outlook, the company anticipates achieving an organic revenue (non-GAAP) growth of 8-9 percent. This projection comprises robust operational performance aligning with the company’s long-term growth model, as well as the expected pricing effects in several markets grappling with inflation.

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