Coke Sales Volumes Tumble 25% In April On Covid-19 Lockdowns

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In this Tuesday, March 24, 2020, photo released by China's Xinhua News Agency, a worker wearing a face mask drives a forklift at a Swire Coca-Cola Beverages Hubei Limited plant in Wuhan in central China's Hubei Province. According to Chinese state media, the plant restarted some production lines on Monday. While many migrant workers across China remain trapped by travel bans due to the coronavirus, some industrial production has returned to action, including in the crucial auto manufacturing industry, which is largely based in Wuhan, and in businesses that provide critical links in global supply chains. The new coronavirus causes mild or moderate symptoms for most people, but for some, especially older adults and people with existing health problems, it can cause more severe illness or death. (Xiao Yijiu/Xinhua via AP)

NEW YORK (AP) – Coca-cola’s global volume tumbled 25% in April as the coronavirus pandemic began to grip large swaths of the world population.

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The year began strongly at Coke, with volumes up 3% through February excluding China, where the outbreak had locked down major cities, and the company was on track to reach its financial targets.

Then, vending, stadium, outdoor events and other sales evaporated.

In the following month, as the virus spread, the behavior of consumers shifted radically. The Atlanta company saw sales spike as people loaded up pantries, though those sales have since leveled off.

Global unit case volumes rose 7% in China in January, then it began to slide. The same pattern was repeated first in Europe, then in North America.

“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,” the company said in a prepared statement. “However, the impact to the second quarter will be material.”

Coca-Cola Co. said Tuesday that first quarter net income jumped 65% to $2.8 billion, or 64 cents per share.

Adjusted for one-time items, the company earned 51 cents per share, easily beating Wall Street projections of 44 cents per share, according to FactSet.

Coke’s adjusted revenue of $8.6 billion also beat analysts’ forecast of $8.3 billion.

The company said earlier that it no longer expects to achieve earlier full-year projections.


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