Coca-Cola Sees Second Quarter Sales Drop 28% As Pandemic Shuts Public Venues

Coca-Cola Co. (KO) posted earnings of $1.78 billion, or $0.41 per share, in the second quarter, down from earnings of $2.61 billion, or $0.61 per share, in the same quarter last year.

Earnings slightly topped analysts’ expectations.

The beverage maker reported second-quarter sales of $7.15 billion, down 28% from $10 billion in the year-ago quarter, as the pandemic and lockdown dampened sales as many public venues shut down.

The Wall Street Journal reported that about one-half of Coca-Cola’s business is generated at restaurants, bars, movie theaters and sports stadiums, many of which were closed during the second quarter. However, Coca-Cola said it witnessed an improvement in sales late in the quarter as lockdowns eased.

"I'm proud of the people of the Coca-Cola system as we continue to adjust and accelerate our strategies in this fast-changing landscape," said James Quincey, chairman and CEO of Coca-Cola. "We believe the second quarter will prove to be the most challenging of the year; however, we still have work to do as we… meet evolving consumer needs."

Global unit case volume dropped by 16% in the second quarter, including a 25% plunge in April.

Unit-case volume for its soft drinks, including Coke, Diet Coke, Fanta and Sprite, plunged by 12% for the quarter, led by a sharp declines in India, Western Europe and the fountain business in North America.

In Asia Pacific, overall unit-case volume tumbled by 18% largely due to lockdowns in India.

As of 10:15 a.m. EDT, Coke shares were up 3.22%.