Coca-Cola Co. (NYSE: KO) released its first-quarter financial results before the markets opened on Tuesday. The firm said that it had $0.51 in earnings per share (EPS) and $8.6 billion in revenue, while consensus estimates had called for $0.44 per share and $8.28 billion. The same period of last year reportedly had EPS of $0.48 on $8.02 billion in revenue.
During the most recent quarter, net revenues declined 1% and organic revenues were flat. Revenue performance included even concentrate sales and even price/mix.
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Unit case volume declined 1%, as solid growth in North America was more than offset by a decline in Asia Pacific due to the impact from the coronavirus. Coca-Cola reported as follows:
- Sparkling soft drinks declined 2% in the quarter led by a decline in Asia Pacific, primarily due to China. For the quarter, trademark Coca-Cola grew 1%, led by strong performance for Coca-Cola Zero Sugar.
- Juice, dairy and plant-based beverages were down 6%, as solid performance in the North American portfolio and Chi in West Africa was more than offset by a decline in Minute Maid Pulpy in China.
- Water, enhanced water and sports drinks grew 2%, led by Cristal in Latin America and strong growth in the sports drinks portfolio in North America, partially offset by a decline in China.
- Tea and coffee volume declined 6%, driven by broad-based softness across multiple markets, as well as a decline in the doğadan tea business.
Looking ahead to the second quarter, the company expects to see comparable net revenues and operating income include a 4% to 5% currency headwind based on current rates. Consensus estimates call for $0.55 in EPS and $9.02 billion in revenue for the quarter.
James Quincey, board chair and chief executive, commented:
We sincerely thank those who have been working to keep all of us safe through the crisis, particularly those on the front lines in the healthcare community. I also want to recognize our system associates, who are ensuring we can continue to supply beverages around the world. Our approach to navigating the pandemic is grounded in our company’s purpose, which ensures that we continuously strive to make a difference for people in the communities we serve around the world. We’ve been through challenging times before as a company, and we believe we’re well positioned to manage through and emerge stronger. The power of the Coca-Cola system is our greatest strength in times of crisis. The resilience of our people, the equity of our brands and the strength of our bottling partners continue to be competitive advantages in the market.
Coca-Cola stock closed Monday at $46.53 a share, in a 52-week range of $36.27 to $60.13. The consensus price target is $53.26. Following the announcement, the shares were down about 1% at $46.15 in early trading indications Thursday.
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