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Earnings Higher But Details Reflect Damage
Shares in US beverage giant Coca Cola are trading down 0.5% pre-market on Wednesday following the company’s Q2 earnings release yesterday.
Coca Cola reported better than expected earnings per share of $0.42 vs $0.40 expected with revenues of $7.2 billion, in line with expectations. However, revenues marked their largest quarter-on-quarter fall in over 30 years.
The report made for dismal reading all in all. Net sales were 28% lower. Organic revenue, which adjusts for currency impact, acquisitions, and divestitures, was down 26% over the quarter. Global unit case volume was lower by 16% following a 25% slump in April.
Widespread Loss of Sales
In terms of the company’s varying businesses, sales of sparkling soft drinks were seen lower by 12% over the quarter while Coca-cola namesake brands saw a decline of 7%. Notably, Coca Cola Zero which had been a major driver of sales growth for Coca Cola fell by 4%.
Tea and coffee sales were hit even harder...
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