Economy

Highlights from Coca-Cola's Q2 2020 Results

Highlights from Coca-Cola's Q2 2020 Results”

For the quarter, Coca-Cola recorded earnings of $1.78 billion, or 41 cents a share, down from $2.61 billion, or 61 cents a share, in the comparable quarter previous year.

In Coca-Cola's second quarter, which ended on June 26, the company's sales fell 28% to $ 7.2 billion. Analysts had predicted EPS of 42 cents on $7.2 billion in revenue.

In a conference call with investors, Coca-Cola Company Chairman and CEO James Quincey said: "We need to do a better job nurturing and growing smaller, more enduring propositions and exiting some zombie brands, not just zombie SKUs".

Since its previous earnings update in April, the global unit case volume trends improved sequentially from a fall of 25% in April to a fall of 10% in June.

Operating margin, which included items impacting comparability, was 27.7% versus 29.9% in the prior year, while comparable operating margin (non-GAAP) was 30.0% versus 30.3% in the prior year.

More news: LeBron James dissed Michael Carter-Williams during scrimmage

Worldwide unit case volume shrank by 16%, despite the fact that volume patterns have given indications of consecutive improvement as worldwide lockdowns ease. Water, upgraded water and sports drinks saw volume decay by 24%.

Shimmering soda pops' volume fell 12% in the quarter. Revenue in the Europe, Middle East and Africa segment tumbled 37% as compared to the prior-year quarter. Tea and espresso volume plunged 31%, generally because of transitory terminations of nearly all Costa bistros in western Europe. So far in July, volume has fallen by the mid-single digits.

"Performance has been driven by improving trends in away-from-home channels, along with sustained, elevated sales in at-home channels", says Coca-Cola.

"While the company believes the second quarter will be the most severely impacted quarter of the year, given the ongoing uncertainty surrounding the coronavirus pandemic and levels of lockdown, the ultimate impact on full year 2020 results is unknown", states the company.

Not a Premium Member of GuruFocus?



Like this

loading...
loading...

Latest


26 July 2020
EPL top four: Michael Owen predicts how it’ll end between Chelsea, Wolves
Meanwhile, Wolves are a great team on the counter and Chelsea will have to be really solid at the back today. Chelsea host Wolves in the Premier League with their Champions League qualification at stake.

26 July 2020
WTA, ATP tennis cancel all tournaments in China over coronavirus
The latter will instead launch at the brand new Top Seed Open in Lexington, alongside a couple of clay tournaments in Europe. The WTA Tour is now planning to resume its 2020 season with the Palermo Ladies Open in Italy on 3rd August.

26 July 2020
Ontario considering mandatory farm worker coronavirus testing as Windsor-area cases surge
After seeing an uptick in hospitalizations on Thursday, the number of patients in hospital has decreased to 141 as of Friday. Over the past 10 days, the province has seen the daily case count range between 103 and 203.

26 July 2020
Fabinho home burgled amid Premier League title celebrations
Salah has made massive contributions in his team's stellar campaign to win the long-awaited trophy, having scored 19 goals. Liverpool's Fabinho had his home burgled as the midfielder celebrated the club's first Premier League title win.

26 July 2020
Congressman John Lewis Honored in Selma Memorial Service, Live Stream
The congressman's family, friends and the public celebrated his life and legacy of fighting for human rights in the U.S. This will be open to the public, and Lewis' family has requested that visitors wear face masks and mouth coverings.

26 July 2020
Sane: I came to Bayern to win the Champions League
He says he has returned to the Bundesliga with his appetite for medals huge and wants to show everyone the impact four years of working with Guardiola had on him.

26 July 2020
Dueling Armed Militias Congregate in Louisville
Locally, demonstrations have focused on the police killing of Breonna Taylor who was gunned down in her home during a raid in March.

26 July 2020
Knicks are reportedly making Tom Thibodeau their next head coach
The franchise's search for the head coach was hard as they tried to interview all possible candidates that can fit into the side. Mike Miller finished the season as interim coach after David Fizdale was sacked 22 games into last season.

26 July 2020
Major WhatsApp Updates Show Up on Android Beta: Linked Devices, Advanced Search
Dark mode was one of WhatsApp's most awaited features, and after months of tests it finally rolled out earlier this year. WABetaInfo notes that users will be able to link devices using a code delivered either via SMS or WhatsApp Chat.

26 July 2020
LG K42 with an Helio P22 chipset hits Google Play Console
The declared LG Q92 5G was captured bring the design number "Q92" and running Android 10 on the software application side. That rumour is gathering traction as an LG model listed as Q92 has appeared on Google Play Console (via Gadgets Rewind ).