What drove Coca-Cola's gross profit growth in 2023?

Coca-Cola's gross profit growth in 2023 was primarily driven by a combination of factors that collectively contributed to the company's robust financial performance:

1. **Revenue Growth**: Coca-Cola's organic revenue grew by 11% in 2023, which is a significant contributor to gross profit expansion. This growth was fueled by innovations in recipes, ingredients, and packaging, as well as strategic brand investments that resonated with consumers. The company's focus on consumer-centric innovations and sharper brand investments, especially in digital marketing, has been instrumental in driving sales and profitability.
2. **Price Mix Improvement**: The price mix improved by 9% in the reported quarter, which is a direct result of the pricing actions taken by the company. Despite double-digit price increases due to rising input costs, Coca-Cola was able to maintain consumer loyalty and volume growth, which is a testament to the strength of its brand and market positioning.
3. **Volume Growth**: Coca-Cola reported a 2% increase in volume globally, which is a positive indicator of its market share and consumer demand. The company's focus on preserving volume growth even in challenging market conditions, such as hyperinflationary markets, has been a key strategy in maintaining its market position and profitability.
4. **Reframining Efforts**: Coca-Cola's refranchising efforts in countries like Cambodia, Vietnam, and the Philippines have not only improved its margins but also enhanced capital efficiency. Reframining has allowed the company to streamline its bottling operations and focus on its core business, which has been beneficial for profitability.
5. **Regional Variations**: While there were regional variations in volume growth—such as a 3% decline in EMEA due to geopolitical events and a flat volume in North America despite price increases—the overall global volume growth, coupled with the price mix improvement, has supported the company's gross profit growth.

In summary, Coca-Cola's gross profit growth in 2023 was driven by a combination of revenue growth, price mix improvement, volume growth, reframing efforts, and regional variations in market performance. These factors collectively contributed to the company's robust financial performance and gross margin of 59.52% as of December 31, 2023.

|code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code|
|---|---|---|---|---|---|---|
|KO|KO.N|The Coca-Cola|2023 Q1|60.6831|-0.5271724965453425|169|
|KO|KO.N|The Coca-Cola|2023 Q2|59.79|1.1538201258712901|169|
|KO|KO.N|The Coca-Cola|2023 Q3|60.2177|2.0986810760954153|169|
|KO|KO.N|The Coca-Cola|2023 Q4|59.5227|2.372238293598243|169|