US News
Coca-Cola Sales Volume Declines Due to COVID-19 Pandemic
For the first two months of the year, before the COVID-19 pandemic escalated, Coca-Cola Co. had growing sales. However, the company reported lower revenue for the latest quarter.
Fox Business reported that Coca-Cola Co. posted first-quarter sales of $8.6 billion, down 1% from a year earlier. Analysts polled by FactSet were targeting sales of $8.3 billion.
The beverage company revealed that its organic revenue was flat, according to Fox Business. This figure doesn't include currency swing effects, acquisitions, and divestitures.
The company reported earnings of $2.76 billion, or 64 cents a share. This is compared with $1.68 billion, or 39 cents a share, in the equivalent quarter last year. Adjusted earnings were 51 cents a share.
Coca-Cola beats on earnings but the coronavirus is now wreaking havoc on the soda giant https://t.co/wO6UTf0OZI by @BrianSozzi pic.twitter.com/YpuOpYWijX
— Yahoo Finance (@YahooFinance) April 22, 2020
In an earnings statement, the company says its sales volume has fallen by about 25% globally since April 1st.
“The ultimate impact on the second quarter and full year 2020 is unknown at this time,” the company said. They argue that “it will depend heavily on the duration of social distancing and shelter-in-place mandates, as well as the substance and pace of macroeconomic recovery. However, the impact to the second quarter will be material.”
“We’ve been through challenging times before as a company, and we believe we’re well positioned to manage through and emerge stronger. The power of the Coca-Cola system is our greatest strength in times of crisis. The resilience of our people, the equity of our brands and the strength of our bottling partners” consistently makes up their “competitive advantages in the market,” said James Quincey, chairman and CEO of The Coca-Cola Company.
Up Next:
