Coca-Cola Sees Demand Improving After 32% Drop in Second-Quarter Earnings
Coca-Cola (NYSE: KO) reported on Tuesday that its second-quarter revenue dropped 28% compared with the year-ago quarter, with organic revenue (which excludes currency impacts, acquisitions, or divestitures) down 26%. This drop marks the largest decline in more than 25 years, according to CNBC. But CEO James Quincey, sounding a note of optimism for the rest of 2020, said the second quarter "will prove to be the most challenging of the year."
Rival PepsiCo (NASDAQ: PEP) last week said it saw flat organic sales in its second quarter. Coca-Cola said its revenue declines were led by a 22% drop in concentrate sales, largely caused by weak away-from-home sales, as bars and restaurants remained closed or relied solely on takeout during the pandemic. Those sales represent about half the company's revenue stream, it said.
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Source Fool.com
