Coca-Cola Co said on Tuesday that demand for its sodas was improving after reporting a 28% drop in sales in one of its “toughest” quarters of the year due to restaurant closings, theaters and sports venues due to coronavirus.
Shares of the world’s largest soda maker rose about 2% before the bell, as they also beat second quarter earnings estimates.
Coca-Cola generates a significant portion of its revenue by selling its soft drinks and concentrates to restaurants and theater operators, such as McDonald’s Corp and AMC Entertainment Holdings Inc, but most of them have had to close some or all of them. all of their operations due to health. crisis.
The Atlanta-based company said unit case volume trends, a key indicator of demand, improved sequentially, from a decline of about 25% in April to a drop of about 10% in June. , while the interlocks have eased.
Volume trends for the month of July to date have been down to single digits globally.
For the June quarter, it was down 16%, the Coca-Cola brand falling 7% and sparkling soft drinks 12%.
Unit volume of teas and coffees fell by 31%, largely due to the temporary closure of Costa stores in Western Europe.
Rival PepsiCo Inc also reported declining beverage sales in North America, but an increase in in-home snacking consumption helped the company beat quarterly revenue estimates.
Coca-Cola reported adjusted revenue of $ 7.18 billion, largely in line with estimates according to IBES data from Refinitiv.
Per share, Coca-Cola gained 42 cents, beating the average analyst estimate of 40 cents.
Net income attributable to shareholders of the beverage maker fell about 32 percent to $ 1.78 billion.
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