Coca-Cola warned Tuesday that social distancing measures to combat coronavirus are weighing on sales in the current period as the company reported a jump in first-quarter profits.

Net income rose 65 percent to $2.8 billion, boosted in part by the one-time accounting of its acquisition of the fairlife dairy company.

Revenues dipped one percent to $8.6 billion, with Asia Pacific suffering the biggest decline following China's coronavirus outbreak.

The cola giant said first-quarter sales got a lift from pantry loading as consumers boosted purchases of soda and other items as governments enacted lockdown measures.

Coca-Cola warned that social distancing measures to combat coronavirus are weighing on sales in the current period as the company reported a jump in first-quarter profit
Coca-Cola warned that social distancing measures to combat coronavirus are weighing on sales in the current period as the company reported a jump in first-quarter profit AFP / JEAN-MICHEL ANDRE

But Coca-Cola said second-quarter results would suffer because of the significant drop in "away-from-home" channels with the suspension of major sporting events and the closing of restaurants, movie theater and other public venues.

"The ultimate impact on the second quarter and full year 2020 is unknown at this time, as it will depend heavily on the duration of social distancing and shelter-in-place mandates, as well as the substance and pace of macroeconomic recovery," the company said. "However, the impact to the second quarter will be material."

Coca-Cola joined the large group of companies that withdrew full-year forecasts due to uncertainty.

Shares dipped 0.3 percent to $46.40 in pre-market trading.

Coronavirus China