The Coca-Cola Company has reported a 9% decline in its Q3 net revenue, but saw a reduced negative impact from the Covid-19 pandemic compared to in Q2.
The company – which owns major beverage brands including Coca-Cola, Sprite, VitaminWater and more – posted Q3 revenues of $8.7 billion, as coronavirus continued to impact its away-from-home channels. Meanwhile, operating income declined 8% in the quarter.
However, the company’s third-quarter results marked an improvement on Q2, when Coca-Cola reported a 28% decline in net revenue and a 34% decline in operating income.
In Q3, unit case volumes of juice, dairy and plant-based beverages declined 6%, while sparkling soft drinks fell 1%, and water, enhanced water and sports drinks were down 11%.
Tea and coffee saw unit case volumes decline 15%, primarily driven by coronavirus-related pressure on Costa retail stores, along with some pressure on Coca-Cola’s Doğadan tea business in Turkey.
Coca-Cola says that recent ‘strategic actions’ have given the company increased confidence in emerging stronger from the pandemic.
These include its global restructuring efforts, product innovation such as the launch of its Topo Chico Hard Seltzer, and portfolio optimisation. The company says that it expects to offer a portfolio of around 200 master brands, approximately 50% less than the current number, and phase out some products, including Zico Coconut Water and Tab diet soda as previously announced.
“Throughout this year’s crisis, our system has remained focused on its beverages for life strategy,” said James Quincey, chairman and CEO of The Coca-Cola Company.
“We are accelerating our transformation that was already underway, shaping our company to recover faster than the broader economic recovery. While many challenges still lie ahead, our progress in the quarter gives me confidence we are on the right path.”