By Adedapo Adesanya
Coca-Cola has disclosed that volume of its soft drinks sold since April has fallen by 25 percent as a result of the biting effect of the coronavirus pandemic globally.
The global beverage brand revealed in its earnings report, lamenting that the closure of movie theaters, restaurants and stadiums as result of the widespread contagion was hurting its business, with a significant impact expected on its second-quarter results.
“The ultimate impact on the second quarter and full year 2020 is unknown at this time, as 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,” The company noted as the company reported its first-quarter results.
Consumers appear to have stocked up on drinks to consume at home in during the third month of the year, a period when lockdowns were put in place in most countries. The company saw heightened demand from grocery stores and e-commerce channels for its drinks in some markets in March due to stockpiling.
And as bars, restaurants and other venues where the range of products are consumed have remained closed, sales have so far declined.
First quarter net revenue for Coca-Cola declined by one percent to 8.6 billion dollars and its earnings per share after adjustments was 51 cents.
It also reported fiscal first-quarter net income of $2.78 billion, or 64 cents per share, up from $1.68 billion, or 39 cents per share, a year earlier.
According to the Atlanta-based company, in Latin America and Europe, the Middle East and Africa, volumes were flat for the quarter as sales took a hit in March due to the virus. Asia Pacific, where the virus hit first, reported falling volumes of 7 percent. North America was the sole region to see growing volumes.
The company then said its full-year financial results cannot be estimated this time, citing the uncertainty around the coronavirus pandemic.
The company also withdrew its 2020 outlook in March. It had previously forecast that 2020 organic revenue would grow by 5 percent and adjusted earnings per share would increase by 7 percent to $2.25.
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