The Coca-Cola Company has reported a 28% decline in its second-quarter net revenue, yet has witnessed improvement since April in global sales volumes. In its last financial report, Coca-Cola announced that its global sales volumes had fallen 25% in April, but today the company has reported a decline of approximately 10% in June. The company posted net revenues of $7.2 billion in the quarter driven by the impact of Covid-19 on its away-from-home channels, which represents approximately half of Coca-Cola’s revenue. Operating income declined 34% in the quarter and unit case volumes of tea and coffee fell by 31%, driven by the temporary closures of Costa retail stores in Western Europe. Unit case volumes of juice, dairy and plant-based beverages declined 20%, while sparkling soft drinks fell 12% and water, enhanced water and sports drinks were down 24%. Coca-Cola says its unit case volumes for July to date is down mid-single digits globally, driven by improvements in the away-from-home channels correlating to the ease of lockdowns. The company expects this positive correlation to continue in the second half of 2020 but is withholding its full-year guidance as the ultimate impact is unknown. “I’m proud of the people of the Coca-Cola system as we continue to adjust and accelerate our strategies in this fast-changing landscape,” said James Quincey, chairman and CEO of The Coca-Cola Company. He added: “We believe the second quarter will prove to be the most challenging of the year; however, we still have work to do as we drive our pursuit of ‘Beverages for Life’ and meet evolving consumer needs.” Coca-Cola says it is focusing investments on prioritised brands, refreshed marketing approaches and new capabilities to capitalise on the emerging shifts in consumer behaviours.
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