Beverages giant Coca-Cola Co. (KO) reported Tuesday a 32 percent decline in profit for the second quarter from last year, reflecting a double-digit revenue decline across its operating markets.
However, adjusted earnings per share for the quarter beat analysts’ estimates, but quarterly revenues miss them. Shares of Coca-Cola are advancing more than 1 percent in pre-market trading.
Net income attributable to shareowners of Coca-Cola for the second quarter declined 32 percent to $1.78 billion or $0.41 per share from $2.61 billion or $0.61 per share in the prior-year quarter. Excluding items, comparable earnings per share were $0.42, compared to last year’s $0.63.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the quarter. Analysts’ estimates typically exclude special items.
Net operating revenues for the quarter decreased 28 percent to $7.15 billion from $10.0 billion in the same quarter last year, driven by a 22 percent decline in concentrate sales and a 4 percent decline in price/mix. The Street expected revenue of $7.18 billion for the quarter.
Organic revenues also declined 26 percent in the quarter. Global unit case volume declined 16 percent as all operating groups experienced coronavirus-related pressure, particularly in away-from-home channels.
Looking ahead to the third quarter and fiscal 2020, Coca-Cola projects comparable net revenues on an adjusted basis for both the periods to be impacted by a 3 to 4 percent currency headwind based on the current rates and including the impact of hedged positions.
Source: Read Full Article