The coronavirus pandemic continues to affect the companies. They are working hard to minimize the damage caused by the coronavirus pandemic. As can be seen from the example of Coca-Cola, it won’t be easy to return to pre-COVID 19 levels. It is worth mentioning that, beverage giant reported its largest decline in quarterly revenue in at least 30 years.
On July 21, the company released information regarding its fiscal second quarter. Let’s have a look at the data, to learn more about the situation.
Interestingly, earnings per share surpassed expectations. Nevertheless, compared to the same period of time in 2019, net income dropped from $2.61 billion or 61 cents per share to $1.78 billion or 41 cents per share.
Moreover, excluding items, the company earned 42 cents per share and this result surpassed expectations.
In the fiscal second quarter, net sales fell 28% to $7.2 billion. Furthermore, organic revenue, which does not include the impact of currency, acquisitions and divestitures fell by 26%.
Additionally, the global unit case volume decreased by 16%. In April, the unit case volume fell by 25%. However, volume declined by 10% in June.
Coca-Cola and interesting details
Importantly, sparkling drinks’ volume fell by 12% and Coke’s namesake brand saw volumes fell by 7%. Also, the demand for Coca-Cola Zero Sugar, dropped by 4%. 
Furthermore, tea and coffee volume declined 31% in the fiscal second quarter, largely due to temporary closures of nearly all Costa cafes in Western Europe.
Moreover, water, enhanced water, and sports drinks also struggled in the quarter, as sales declined by 24%. The volume of juice, dairy, and plant-based beverages fell by 20%.
Coca-Cola plans to pay more attention to larger and more popular brands. For example, less than half of its 400 major brands account for 98% of the company’s revenue.
The company is planning to update its marketing approach, as it wants to spend money more efficiently and effectively.
COMMENTS