• Coca-Cola posted earnings and revenue that topped expectations.
• Higher prices helped to offset sluggish demand for beverages.
• Coke said it now expects organic revenue growth of about 10% this year, the high end of its previous range.

Coca-Cola on Wednesday reported quarterly earnings and revenue that topped analysts' expectations, thanks to a boost from higher prices that offset sluggish demand.

Shares of the company fell 2% in morning trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 77 cents adjusted vs. 74 cents expected
• Revenue: $11.95 billion adjusted vs. $11.60 billion expected

Coke reported third-quarter net income attributable to shareholders of $2.85 billion, or 66 cents per share, down from $3.09 billion, or 71 cents per share, a year earlier.

Excluding items, the company earned 77 cents per share.

Adjusted net sales of $11.95 billion were roughly flat from a year earlier. Coke's organic revenue, which strips out the impact of acquisitions, divestitures and currency, climbed 9% during the quarter.

Unit case volume fell 1% in the quarter, driven by weakening demand in some international markets. The metric strips out the impact of pricing and foreign currency to reflect demand. Consumer companies, including Coke, have reported in recent months that customers are more price sensitive, leading to sluggish demand for its products as prices remain high.

A set of consumers are "exhibiting value-seeking behavior," Quincey told analysts on the company's conference call. That shift includes buying fewer packs of Coke products or smaller size drinks at fast-food restaurants.

Even so, Coke in recent quarters has been besting rival PepsiCo, which has been dealing with the fallout from Quaker Foods recalls, in addition to a U.S. consumer who has been snacking and drinking less. Pepsi said volume for its North American beverage business fell 3% in its third quarter, fueled by weakening demand for energy drinks.

Coke's unit case volume in North America was flat for the quarter, as shrinking demand for its water, sports, coffee and tea products offset growth in its namesake soda, juice, dairy, plant-based beverages and sparkling flavors. Executives said premium products, like Fairlife milk and Topo Chico seltzers, have been performing well, despite their higher price tags.

But unit case volume fell 2% in both the company's Europe, Middle East and Africa and Asia-Pacific regions. The company called out volume declines in China and Turkey specifically. Like North America, Latin America reported flat volume.

Globally, volume for Coke's sparkling soft drinks, like Sprite, and for its namesake soda were both flat for the quarter. The company's juice, dairy and plant-based beverages division reported a 3% decline in volume. Its water, sports, coffee and tea segment saw volume fall 4%, fueled by a 6% drop in bottled water.

Coke said its pricing rose 10%. Roughly 4% of that increase comes from markets experiencing intense inflation, like Argentina, while the rest is the result of price hikes and customers trading up to pricier options.

"We see us heading towards a more normalized level of pricing going into next year and landing in a more normal zone that tracks at similar rates to the CPI," Quincey said, speaking about North American pricing more specifically. "Of course, we continue to be very choiceful about where we invest for affordability options and where we invest for premiumization options."

For 2024, Coke now expects organic revenue growth of roughly 10%, on the high end of its prior range of 9% to 10%. The company reiterated its projection that comparable earnings per share will rise 5% to 6%.

Coke will provide its full 2025 outlook when it reports fourth-quarter earnings, but the company is already expecting currency to hurt its results next year. Coke is projecting a low-single-digit headwind for comparable revenue and a mid-single-digit headwind for earnings per share.