In this news, we discuss the Coca-Cola results beat as sales improve from pandemic lows.
(Reuters) – Coca-Cola Co KO.N beat revenue and profit forecasts on Thursday as strong ‘home’ sales helped the world’s largest soda maker rebound from a smashing second quarter, pushing up its shares of 2% before the bell.
The beverage company, which derives about half of its revenue from sales in restaurants, theaters and other public places, reported a slowdown in the “away from home” sales decline and said the last quarter was the hardest.
The company said sales of its Coca-Cola and Coca-Cola Zero Sugar brand are now positive.
“While many challenges remain, our progress during the quarter gives me confidence that we are on the right track,” CEO James Quincey said in a statement.
Organic sales, which eliminate acquisitions and currency effects, fell 6% for the three months ended Sept. 25, but improved from a 26% decline in the second quarter.
Hurt by the lockdowns, the Atlanta-based company launched a restructuring plan in August that included job cuts, a rationalization of its beverage portfolio and a greater focus on popular products, including its signature soda.
The company said consumers continue to source sodas and other beverages at home, even as Coca-Cola channels, which include sales of concentrates and beverages to consumers. sites exterior and vending machines, remained under pressure.
Rival PepsiCo Inc PEP.O, which also suffered during lockouts, was able to rebound from the recession with better sales at convenience stores and gas stations as well as continued demand for snacks.
Net income attributable to shareholders of Coca-Cola fell 33.01% to $ 1.74 billion.
Per share, the company gained 55 cents per share, 9 cents above expectations, according to IBES data from Refinitiv.
Net income fell 9% to $ 8.7 billion, above the estimate of $ 8.36 billion.
Report by Nivedita Balu in Bengaluru; Edited by Arun Koyyur
Original © Thomson Reuters