On October 23rd, Coca Cola Company released its financial report for the third quarter of 2024. According to the financial report, the company achieved a revenue of 11.854 billion US dollars in the third quarter, exceeding market expectations of 11.61 billion US dollars; Operating profit of 2.51 billion US dollars; Net profit of 2.85 billion US dollars; Earnings per share were $0.77, an increase of 5%, higher than the market expectation of $0.75.
In the constantly changing external environment, our business continues to demonstrate strong resilience, "said James Quincey, Chairman and CEO of Coca Cola." We are greatly encouraged by our performance so far this year and our system's ability to continue focusing on long-term growth opportunities in response to recent challenges
Focusing on core categories and multiple scenarios to stimulate consumer vitality
According to the financial report, Coca Cola's single box sales in the Asia Pacific region decreased by 2% in the third quarter. This is mainly due to the growth of the flagship brand "Coca Cola" being offset by the decline in bottled water, sports drinks, ready to drink coffee and tea, fruit juice, dairy drinks, and plant-based beverages.
In the third quarter, in the Asia Pacific region, despite weak performance in some markets in China and Southeast Asia, we still achieved growth in organic revenue and comparable operating revenue in this region, "said Zhan Kunjie during the earnings call.
Zhan Kunjie analyzed the performance of the Chinese market, pointing out that it is not only influenced by changes in the external environment, but also closely related to the company's strategic decisions. He mentioned that the company is more focused on core categories in the Chinese market, such as carbonated beverages, and has received positive market feedback.
In the third quarter of this year, Coca Cola accelerated its empowerment of the Chinese market, continuously making efforts in product innovation, brand building, drinking scenarios, and exploring the possibility of market growth.
It is understood that based on a deep understanding of the cultural trend of the younger generation's "child pairing", Coca Cola and Oreo& reg; Two major brands have formed a "new collaboration" and launched exclusive cross-border joint products - Coca Cola New Collaboration Oreo Limited Edition Coca Cola Soda and Oreo Coca Cola Soda Flavored Sandwich Biscuits. At the same time, from July to August, Coca Cola Company also utilized the Paris Olympics to deepen its emotional connection with consumers by strategically planning festivals, large-scale events, and other scenarios.
In addition, in September, Coca Cola China signed a five-year strategic cooperation agreement with Chimelong Group at Chimelong Tourist Resort in Guangzhou. According to the agreement, Coca Cola China will provide a full range of beverage solutions including carbonated beverages, fruit juices, tea, ready to drink coffee, and packaged water for Chimelong Group's theme parks and hotels. Coca Cola China's bottling partners in the Greater Bay Area, Guangdong Taikoo Coca Cola and Zhuhai Coca Cola, will provide strong support for this cooperation.
Renowned strategic positioning expert and founder of Fujian Huace Brand Positioning Consulting, Zhan Junhao, told Securities Daily reporters that Coca Cola's actions demonstrate its deep understanding and long-term investment in the Chinese market. Through efforts in product innovation, brand cooperation, large-scale event marketing, channel expansion, supply chain investment, and sustainable development, it explores and seizes market growth opportunities. These strategies help Coca Cola maintain competitiveness in the Chinese market and also contribute to the company's global business growth.
Investment in supply chain layout drives steady business growth
Faced with diversified market demands, Coca Cola continues to strengthen its supply chain construction in order to reach more consumer groups. Coca Cola collaborates with two major bottling partners to increase local investment and construction, providing momentum for long-term business growth.
On October 18th, Yunnan Taikoo Coca Cola's new packaging glass bottle production line was officially put into operation. The total investment of the production line is about 17.741 million yuan, and it can produce glass bottles of Coca Cola, Sprite, and Fanta.
With the launch of the new packaging glass bottle production line, Yunnan Taikoo Coca Cola can supply more than 150 SKUs of products in Yunnan, covering soda, juice, tea drinks, coffee, drinking water, etc., which will effectively respond to market trends and further meet consumer needs.
The Guangdong Taikoo Coca Cola Greater Bay Area Intelligent Green Production Base, which started construction in Guangzhou in May this year, is currently under smooth construction. The total investment of this project is 1.25 billion yuan, covering an area of nearly 128000 square meters. It plans to build 11 new beverage production lines, a three-dimensional warehouse, and supporting facilities. After completion, it will increase production capacity by about 66% compared to the current level.
At the same time, the relocation project of COFCO Coca Cola Shaanxi Company is also steadily progressing. The project is expected to be put into operation in September 2025, covering an area of 170 acres with a factory construction area of approximately 79000 square meters and a total investment of 1 billion yuan. The new factory is planned to have 8 beverage production lines and 1 syrup production line, with a maximum designed production capacity of approximately 1.1 million tons. It is reported that the new factory will further upgrade its digital production line and management tools, aiming to become the supply center of COFCO Coca Cola's northwest regional supply chain.
Zhu Danpeng, Vice President of Guangdong Food Safety Promotion Association, told Securities Daily reporters that the Chinese market is still a relatively large market for Coca Cola, and Coca Cola's continuous strengthening of supply chain construction in China is full of confidence in the performance of the Chinese market.
Zhan Kunjie also reiterated Coca Cola's confidence in the long-term growth of the Chinese market and stated that it will continue to invest to seize future growth opportunities. Based on its impressive performance in the third quarter, Coca Cola has raised its full year performance guidance based on its year to date performance, updating the growth rate of comparable currency neutral earnings per share (non GAAP) to 14-15%, higher than the previously estimated 13-15%.