Coke Zero sales jump, helping Coca-Cola beat forecasts despite revenue dip

Core Insights - Coca-Cola reported a 1% decline in net revenues to $11.9 billion for the third quarter, which was better than analysts' expectations of $11.65 billion [2] - Earnings per share decreased by 7% to $0.66, falling short of the analyst consensus of $0.74 [2] - The company experienced an 11% increase in sales of Coca-Cola Zero Sugar, contributing to the better-than-expected revenue performance [2] Revenue Performance - The revenue decline was attributed to a 2% decrease in concentrate sales, despite a 10% increase in price/mix [2] - Coca-Cola's CEO highlighted the company's resilience in a challenging external environment and expressed optimism about long-term growth opportunities [2] Market Trends - The company noted potential growth in the non-carbonated drink market, supported by its sponsorship of the 2024 Paris Olympics [2][3] - Strong international sales have previously helped offset weaker consumer demand in the US, although unit case volume declined in Europe, the Middle East & Africa, and Asia Pacific during the third quarter [4] Consumer Behavior - Investors are keen to understand consumer spending behavior as the year-end approaches, with US consumers reportedly facing challenges from accumulated price increases due to global inflation [4] - Retailers, including Costco and Walmart, have been reducing prices amid cautious consumer spending patterns [5] Competitive Landscape - Coca-Cola's rival PepsiCo has also reported weaker-than-expected sales for two consecutive quarters and has lowered its full-year organic sales outlook [5]