Coca-Cola (NYSE:KO) said Tuesday the closure of movie theaters, restaurants and stadiums from the coronavirus is hurting its business, with a significant impact expected on its second-quarter results.
The beverage company said its global volumes have plunged 25% since this month.
“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,”Coke said. “However, the impact to the second quarter will be material.”
Coke’s comments came as the company reported its first-quarter results, which received a short-term lift from consumers stocking up on beverages as they prepared for an extended stay at home. About half of the company’s revenue typically comes from consumers drinking at home.
Coke reported fiscal first-quarter net income of $2.78 billion, or 64 cents per share, up from $1.68 billion, or 39 cents per share, a year earlier.
Excluding asset impairment charges and other items, Coke earned 51 cents per share.
Net sales dropped 1% to $8.60 billion. Organic revenue, which strips out the impact of foreign currency, acquisitions and divestitures, for the quarter was flat.
Wall Street anticipated earnings per share of 44 cents on revenue of $8.28 billion. However, it’s difficult to compare reported earnings to analyst estimates for Coke’s quarter, as the coronavirus pandemic continues to hit global economies and makes earnings impact difficult to assess.
Shares lost 43 cents to $46.10