Coca-Cola Earnings Drastically Drop Amid Coronavirus Lockdown
Coca-Cola’s global sales dropped 28 percent in the second quarter as coronavirus lockdowns continue to adversely affect consumption.
The soft drink giant says the decline came after restaurants, bars and movie theaters were forced to shut down in order to take necessary precaution in controlling the COVID-19 pandemic. Venues like these account for roughly half of Coke’s revenues.
According to Bloomberg data, net sales dropped from $10 billion a year ago to $7.2 billion between April and June, roughly in line with Wall Street’s expectations.
“We believe the second quarter will prove to be the most challenging of the year; however, we still have work to do as we drive our pursuit of ‘Beverages for Life’ and meet evolving consumer needs,” Coke Chairman and CEO James Quincey said in a statement.
The pandemic has also struck Coke’s profits, with adjusted earnings per share plummeting 33 percent year-over-year to 42 cents.
The earnings knocked helped lift Coke’s stock price as much as 4 percent to $47.99 in early trading Tuesday.
Coca-Cola managed to recover because of an increase in at-home consumption during the pandemic, consumers were in hysteria driving them to stock up.
The company said the number of drinks sold by Coke and its bottling partners experienced a decrease of 25 percent in April, in June, sales improved and was only down 10 percent.
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