JOIN USCoca-Cola results hit by halt to pro sports, live events
Coca-Cola reported a steep drop in second-quarter profits Tuesday due to a big decline in away-from-home consumption, especially at the height of the coronavirus lockdowns.
The results underscored the soda maker's reliance for sales on sporting events, movie theaters and entertainment -- economic segments that have been battered by social distancing protocols instituted to address Covid-19.
Net income came in at $1.8 billion, down 32 percent, behind a 28 percent decline in sales to $7.2 billion.
Coca-Cola expects the second quarter to be "the most severely impacted" period of 2020, "the ultimate impact on full-year 2020 results is unknown," the company said.
Like many other large companies, Coca-Cola withdrew its annual forecast this spring amid the upheaval of the Covid-19 shutdowns.
The company did not restore a projection in its second-quarter earnings statement, a sign of continued uncertainty as large markets including the United States continue to battle outbreaks.
Volumes bottomed out in April with a decline of 25 percent, but improved gradually to a drop of 10 percent in June as lockdowns eased, the company said.
"Performance has been driven by improving trends in away-from-home channels, along with sustained, elevated sales in at-home channels," Coca-Cola said.
Shares rose 2.2 percent to $47.07 in pre-market trading.