Targeted by the government: Coca-Cola invested 6.1 billion TL in Turkey in 2023
While Israel's attacks on the Gaza Strip continue, it has emerged that Coca-Cola İçecek—whose products were banned from sale in Agricultural Credit (Tarım Kredi) markets by the government, and also prohibited in the Parliament and by AKP-run municipal subsidiaries—invested 6.1 billion lira in Turkey.
İHA
Coca-Cola İçecek (CCI) has announced its financial results for 2023.
CCI announced that despite a 2.6 percent decrease in consolidated sales volume in 2023 compared to the previous year, they did not slow down their investments and invested a total of 6.1 billion TL across their operational geography.
The company's net sales revenue for 2023 increased by 8.4 percent on an organic basis, while its net profit for the period rose by 48.3 percent.
The company's year-end operating profit (EBIT) increased by 26.2 percent to reach 14.5 billion TL.
While a 25.7 percent growth in net sales revenue was recorded in the Turkish market in 2023, net sales revenue per unit case increased by 32.4 percent. In international operations where inflation accounting is not mandatory, net sales revenue growth was 59.3 percent, while net sales revenue per unit case rose by 61.2 percent in TL terms. On a currency-neutral basis, it showed an increase of 21.0 percent.
6.1 BILLION LIRA INVESTMENT
Stating that despite the contraction in sales volume, they have not abandoned their strategy of investing ahead of demand and are continuing their investments intensively, Karim Yahi said:
“Our total capital expenditure in 2023 reached 6.1 billion TL, with 33 percent directed toward our Turkey operations. The ratio of capital expenditure to sales was 6.1 percent in 2023. Our investments will continue in 2024, primarily with two new factories in Shymkent, Kazakhstan, and Samarkand, Uzbekistan. In 2024, we will also lay the foundations for our factories in Ismayilli, Azerbaijan; Baghdad, Iraq; and Namangan, Uzbekistan. With the strength of our business model and our focus on a quality growth algorithm, we continue to create value in the countries where we operate.”
BOYCOTT CALLS WERE MADE
Calls for a boycott had been made against Coca-Cola, and its sale was banned in many AKP-run municipalities and Agricultural Credit (Tarım Kredi) markets due to claims that it is an 'Israeli product'.