The Strategist

Coca-Cola sales drop by 20% in April

04/22/2020 - 03:01

Coca-Cola reported that its revenue was $ 8.6 billion in the first quarter of this year, which is 1% less than a year earlier. The company's net profit amounted to $ 2.8 billion, which is 65% more than in the same quarter of the previous year.

The company noted that in the first two months its revenue grew by 3% (excluding China). However, in March, the company began to feel the effects of the pandemic, quarantine measures, the closure of catering establishments and lower consumer spending. Therefore, Coca-Cola warned that the effects of quarantine could significantly affect its results for the second quarter.

In addition, the company noted that “since the beginning of April, global sales have declined by 25%.” At the same time, Coca-Cola emphasizes that it is currently difficult to predict what the impact of the pandemic will be in the second quarter: it will depend on how long the quarantine measures in the USA and other countries last.