Coca-Cola Sales Hit by Monsoon in India | Q3 2024

New Delhi, Oct 23 (PTI) Soft drinks major the Coca-Cola Company on Wednesday said its sales volume in India during the July-September quarter was impacted due to heavy monsoons in several states.

However, in states which received normal rains, it has a mid-single-digit volume growth, said the Coca-Cola company Chairman and CEO James Quincey in an earnings call.

"In India, volume declined in states impacted by higher than normal monsoons. In geographic areas that were unaffected, volume grew mid-single digits," he said.

However, Quincey, also expressed optimism terming it as a "temporary factor" and expected India to return to growth next year.

"... heavy monsoons tend to be a good predictor of agricultural yield, which would be then better next year," he said.

Several other FMCG companies, which operate in the food & beverages segment have reported a decline in volume in the September quarter on account of reason as higher than expected normal monsoons, disturbing the market.

India is the fifth largest market for Coca-Cola. Its brands include Sprite, Thumps-up, Kinley, Limca, Fanta and Maaza.

The Atlanta-headquartered beverage major reported 1 per cent decline in its net revenues to USD 11.9 billion in the September quarter.

Its Global Unit Case Volume declined 1 per cent in the quarter.

Unit case volume means the number of unit cases of company beverages directly or indirectly sold by the company and its bottling partners to customers.

Earlier in January this year, HCCB, Coca-Cola's bottling arm in India, divested some of the company-owned bottling plants in three territories to its existing bottling partners.

“During the nine months ended September 27, 2024, the company recorded a net gain of $290 million related to the refranchising of our bottling operations in certain territories in India, including the impact of post-closing adjustments,” said Coca-Cola in its earnings statement.