Coca Cola Pakistan Sales Plunge Following Boycott Calls

Coca-Cola Icecek AS reported a decline in sales across Turkey and Pakistan in July-September 2024 due to boycotts against brands linked to Israel, Bloomberg reported. Sales volume in Turkey dropped 12.2 percent and a much higher 22.9 percent in Pakistan compared to the same period last year, according to Icecek’s Tuesday filing. This led to a 7.1 percent drop in Coca-Cola Icecek’s shares to 45.12 Turkish liras, marking its worst single-day collapse since May 2023. Shares further declined by 4.8 percent on Wednesday. The regional boycott has also impacted US-based fast-food chains such as McDonald’s and KFC, as consumers across Asia, the Middle East, and parts of Europe shift away from American brands over perceived ties to Israel following the genocide in Gaza. The company’s quarterly net income fell 61 percent year-over-year to 5.17 billion liras ($151 million), missing analyst projections of 5.72 billion liras. Coca-Cola Icecek also revised down its net-sales-revenue growth guidance amid the volatile operating environment. Sales volumes rose by 1.3 percent in other countries driven by stronger demand in Iraq, Azerbaijan, and Kazakhstan.