The Coca-Cola Company reported first-quarter 2020 results and provided insight into how the company is navigating through the ongoing coronavirus pandemic. The Coca-Cola system continues to work to ensure the safety and support of its employees, consumers, customers and communities during this challenging time.
The beverage company has announced that its global sales volumes have fallen 25% this month due to COVID-19 disruption, as the company reported flat Q1 revenues.
Coca-Cola reported Q1 revenues of $8.6 billion, representing a fall of 1% when compared to the same period last year.
In addition, the company’s operating income declined marginally by 2% to $2.38 billion. Unit case volumes of sparkling soft drinks declined 2% in the quarter, while juice, dairy and plant-based beverages were down 6% and tea and coffee volume declined 6%.
A closer look at the statement by Brand Spur shows that the Unit case volume was even as strong growth through February was offset by the coronavirus-related impacts in March. In terms of markets, strong growth across Nigeria, the Middle East and North Africa was offset by declines in Western Europe and South Africa
The company entered 2020 with solid momentum, coming off strong results in 2019. Through the end of February, the company was growing volume 3%, excluding China, and was on track to achieve its previously provided full-year 2020 targets.
According to a statement in the company’s quarterly earnings release said: “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.”
“We sincerely thank those who have been working to keep all of us safe through the crisis, particularly those on the front lines in the healthcare community. I also want to recognize our system associates, who are ensuring we can continue to supply beverages around the world,” said James Quincey, chairman and CEO of The Coca-Cola Company. “Our approach to navigating the pandemic is grounded in our company’s purpose, which ensures that we continuously strive to make a difference for people in the communities we serve around the world. 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 continue to be competitive advantages in the market.”