Coca-Cola (KO) earnings Q3 2020

 

In the third quarter of this year, the Coca-Cola Company's net income reached 8.652 billion US dollars, a decrease compared with the same period last year, a decrease of about 9% but a month-on-month increase of 21%. This was due to the continued pressure of the "going out" channel.

Single-box sales of the Coca-Cola brand increased by 1% this quarter, and sales of Zero Sugar Coca-Cola increased by 7%. However, in the Asia-Pacific and Latin America regions, the sales of juice, dairy products and plant-based beverages were under pressure, resulting in a 6% decline in departmental revenue.

 

Tea and coffee were hardest hit, with demand falling by about 15% year-on-year. One of the most important reasons is that the business of its Costa coffee shop has been greatly reduced due to the epidemic. Coca-Cola is pessimistic that Costa's traffic is unlikely to recover in the short term.

When operating under pressure, Coca-Cola is also planning to transform. It is reducing its investment portfolio and reducing beverages like Tab, which have poor sales and do not have much growth opportunities. It plans to cut about 50% of the brands (approximately 200) and focus on its most profitable products.

 

 

(images from the internet)

(Images from the internet)