NEW YORK, USA – Coca-Cola warned on Tuesday, April 21, that physical distancing measures to combat the coronavirus are weighing on sales in the current period as the company reported a jump in 1st quarter profits.
Net income rose 65% to $2.8 billion, boosted in part by the one-time accounting of its acquisition of the Fairlife dairy company.
Revenues dipped 1% to $8.6 billion, with Asia Pacific suffering the biggest decline following China’s coronavirus outbreak.
The cola giant said 1st quarter sales got a lift from pantry loading as consumers boosted purchases of soda and other items as governments enacted lockdown measures.
But Coca-Cola said 2nd quarter results would suffer because of the significant drop in “away-from-home” channels with the suspension of major sporting events and the closing of restaurants, movie theaters, and other public venues.
“The ultimate impact on the 2nd 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,” the company said. “However, the impact to the 2nd quarter will be material.”
Coca-Cola joined the large group of companies that withdrew full-year forecasts due to uncertainty.
Shares dipped 0.3% to $46.40 in pre-market trading. – Rappler.com
There are no comments yet. Add your comment to start the conversation.