Charlotte’s Coca-Cola Consolidated, the largest U.S. Coca-Cola bottler, reported net income of $92.1 million in the third quarter, down from $118.8 million in the same period a year earlier.
Revenue gained 5.1% during the quarters to $1.7 billion, as the company offset a volume decline with higher prices. The bottler offers more than 300 brands and flavors affiliated with the Atlanta-based Coca-Cola Co. and other partner businesses. It operates in 14 states and the District of Columbia.
“While our profit growth in the third quarter moderated, as expected, our overall results this year are the strongest in our history,” Chairman and CEO J. Frank Harrison said in a release. “We also achieved a significant milestone in our balance sheet management this quarter, as our cash on hand exceeded our outstanding debt balance, making us net debt free for the first time in almost 40 years.”
Harrison said he expects sales growth to slow further in the current quarter because of the impact of price increases over the past year. Standard physical case volume declined 2.8% in the first nine months of 2023.
“Our strategy of offering consumers a variety of packages at affordable prices across our portfolio is helping differentiate us in the marketplace and drive solid volume performance, particularly with our Sparkling beverages,” said Dave Katz, president and chief operating officer, in the release.
While company shares trade publicly, the Harrison family has a controlling stake in the 121-year-old company.
The company’s shares have gained 26% this year and have had a total return of 280% over the past five years.