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Coca-Cola Europacific Partners cuts annual sales forecast on weak Europe demand
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Coca-Cola Europacific Partners cuts annual sales forecast on weak Europe demand
Nov 5, 2024 3:21 AM

Nov 5 (Reuters) - Coca-Cola Europacific Partners

, a bottling unit of Coca-Cola, lowered its

annual sales forecast on Tuesday in response to reduced demand

for beverages in Europe, as well as weakness in Indonesia linked

to the Middle East conflict.

Although demand for sodas has remained resilient, customers

from lower income groups are becoming more cautious and opting

to eat at home rather than dining out, hurting volumes of

Coca-Cola Europacific Partners.

The company bottles Coca-Cola, Fanta, Sprite and Monster in

Western Europe, Australia and New Zealand and sells drinks to

fast-food chains including McDonald's and KFC-owner Yum Brands,

as part of combo meals.

In Europe, however, volumes declined 1.4% in the third

quarter, compared to a 4% fall in the previous quarter. The

smaller drop was a result of a boost from consumers spending at

music festivals and sporting events such as the Euro 2024

Football Championship and the Paris Olympics.

Volumes in Southeast Asia were impacted by weakness in

Indonesia, a Muslim-majority country, mainly arising from a

boycott of multinational brands in response to the crisis in the

Middle East.

The company's adjusted revenue rose 2.4% to 5.36 billion

euros ($5.84 billion) in the third quarter. Overall comparable

volumes rose 19.1%, while revenue per unit case was 5.32 euros.

Coca-Cola Europacific Partners expects its annual comparable

revenue to rise about 3.5%, compared with a prior forecast of

about 4% growth.

In October, Coca-Cola forecast its annual sales to grow 10%

as growing demand for its higher-priced sodas and juices in the

U.S. helped it post a surprise rise in third-quarter sales.

($1 = 0.9181 euros)

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