The Coca-Cola Co forecasted on Tuesday a noticeable hit to the current-quarter results because the restaurants, theatres and other venues that represent half of the company's revenue stay closed due to the coronavirus or COVID-19 pandemic.
The speed at which the virus which got first detected in the Chinese city of Wuhan last December is has claimed the lives of more than 170,000 people around the world forcing the restaurants, grocers, sports arenas and entertainment venues to keep their doors shut.
Coca-Cola facing losses
The group, which provides syrups and concentrates to several fast-food chains, theatres and amusement parks, said it saw volumes drop about 25 percent globally since the beginning of April, largely stemming from the loss of sales other than at retail stores.
The Atlanta-based beverage maker, which last month said it would not be able to reach this year's financial goals, now expects current-quarter comparable revenue to include a 4% to 5% hit from a stronger dollar. Several concerts and sporting events, including the company-sponsored Tokyo 2020 Olympics, have been postponed or cancelled.
"The ultimate impact on the second quarter and full-year 2020 is unknown at this time ... However, the impact to the second quarter will be material," the company said in a statement. For the first quarter ended March 27, net revenue fell one percent to $8.6 billion. Excluding one-time items, Coke earned 51 cents per share, beating the market consensus estimate of 44 cents, according to IBES data from Refinitiv.
(With agency inputs)