Coca-Cola Records Worst Performance in 25 Years... "The Worst Is Over"

28% Decrease Compared to Same Period Last Year Due to COVID-19 Impact

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Despite recording the worst quarterly performance ever due to the impact of the novel coronavirus disease (COVID-19), Coca-Cola is being evaluated as having "already passed the worst," as sales have increased in Asia and Europe.

According to the Wall Street Journal (WSJ) on the 21st (local time), Coca-Cola's second-quarter sales amounted to $7.15 billion (approximately 8.54 trillion KRW), a sharp 28% decline compared to the same period last year. This is the worst quarterly performance in the past 25 years.

About 50% of Coca-Cola's sales come from restaurants, bars, movie theaters, and sports stadiums, which were directly hit by lockdown measures due to COVID-19.

However, sales have increased in Southeast Asia and Western Europe despite the impact of COVID-19, leading to speculation that the bottom has already been reached.

John Murphy, Coca-Cola's Chief Financial Officer (CFO), stated, "Crisis responses to the COVID-19 pandemic in Southeast Asia, China, and Western Europe have been quite effective, resulting in improved sales in May and June. Although confirmed cases are still rapidly increasing in many parts of the United States, the degree of lockdown is not as severe as before, so we assess that the worst is over."

Reflecting this optimism, Coca-Cola's stock price rose more than 3% during the trading session.

There were also items that sold better than usual due to the COVID-19 pandemic. The star performers supporting Coca-Cola during this period were Fairlife milk and Simply Orange juice, as these brands are consumed more at home. Carbonated beverages such as Coca-Cola, Coca-Cola Zero, and Sprite also recorded good sales in grocery stores for home use, but were severely impacted as restaurants and fast-food outlets closed due to social distancing measures.

In response to COVID-19, Coca-Cola is simplifying its brand portfolio. Earlier this month, Coca-Cola decided to discontinue its Odwalla juice and smoothie business division. It will also stop refrigerated truck deliveries.

This content was produced with the assistance of AI translation services.