The Covid-measures inflicted Coca-Cola with a 28 % turnover drop in the second quarter of its financial year. Still, the soft drinks producer remains hopeful as it sees signs of recovery.
Coca-Cola felt the force of the coronavirus measures: supermarkets remained open, but in many countries restaurants, cinemas and sports facilities had to close - sectors whose combined importance represents almost half of the group's sales. However, the company sees the bright side as the softening of measures went hand in hand with a return of sales: in April sales went down 25 %, in June that was only 10 % and in July the drop remains in the single figures.
"We cannot discount there might be further waves of lockdowns", Reuters quotes CEO James Quincey, but "Having said that, I am pretty confident that the second quarter will ultimately prove to have been the most difficult and the most impacted quarter."
Improve digital presence
The drinks producer wants to be more prepared for future setbacks by strengthening its digital presence, collaboration with third parties and attractive additions to its range for restaurants. The company expects that its revenues from restaurants will be impacted because during the pandemic, consumers have discovered the convenience of ordering restaurant meals online and have them delivered at home.
The turnover drop of 28 % is a lot worse than the 3.1 % drop rival PepsiCo announced last week, but the latter was able to compensate for its drop in drinks sales by selling more cereals and snacks.