KO Coca Cola Company

By Dave Sebastian 

Coca-Cola Co. said its sales fell 28% for the latest quarter as fewer of its products were sold at bars and restaurants -- many of which were still shut due to the Covid-19 pandemic.

The beverage giant on Tuesday posted second-quarter sales of $7.15 billion, down from $10 billion a year earlier. Analysts polled by FactSet were targeting sales of $7.21 billion. Organic revenue, which excludes the effects of currency swings, acquisitions and divestitures, fell 26%.

About half of Coca-Cola's business comes from restaurants, bars, movie theaters and sports stadiums that have been shut world-wide. The company said it saw an improvement in its sales as lockdowns eased, and it expects the trend to continue for the rest of the year.

Some U.S. states recently saw a resurgence in Covid-19 cases, though new cases rose by their smallest daily increase in a week as parts of the country took steps to try to curb the pathogen's spread.

For the quarter ended June 26, 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 last year.

Adjusted earnings were 42 cents a share, ahead of the 40 cents a share analysts had expected.

The company's unit-case volume, or the number of 24 8-ounce servings of finished beverages sold, fell 16% for the quarter. The metric was down mid-single digits globally so far this month but is better than the roughly 10% decline in June and 25% in April.

Unit-case volume for its sparkling soft drinks, which include its namesake soda drink, Diet Coke, Fanta and Sprite, fell 12% for the quarter, led by a decline in India, Western Europe and the fountain business in North America. Unit-case volume for its namesake drink declined 7%, while that of Coca-Cola Zero Sugar fell 4% for the quarter. Juice, dairy, water, tea and coffee sales also dropped.

In Asia Pacific, unit-case volume fell 18% due to strict lockdowns in India, though sales in China helped offset the decline. The metric dropped 17% in the Europe, Middle East and Africa region.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

July 21, 2020 08:08 ET (12:08 GMT)

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