- Coca-Cola Sales Decline by 25% in April
Coronavirus pandemic plunged Coca-Cola’s sales by 25 percent in the month of April as stadium and bars were forced to shut down operations amid ravaging COVID-19.
Coca-Cola, one of the companies regarded as less vulnerable to recession, has started experiencing weak sales after reporting modest sales in the first quarter due to people stockpiling soft drinks ahead of lockdown.
According to the company’s financial reports for the first quarter, sales declined by 1 percent to $8.6 billion when compared to a year ago, while operating profits dipped by 2 percent to $2.38 billion.
However, the volume of sales has now dropped by a quarter as nations grapple with rising unemployment rates and zero earnings amidst lockdowns.
The company said sales dropped by 25 percent in April, down from about 3 percent growth recorded up until the end of February 2020. The decline was mainly from ‘away from home channels’ were Coca-cola sells 50 percent of its products. These are the cinemas, stadiums and other venues as well as bars and restaurants.
After the first-quarter results, the company had said: “The ultimate impact on the second quarter and full year 2020 is unknown at this time, as it will depend heavily on the duration of social distancing and shelter-in-place mandates, as well as the substance and pace of macroeconomic recovery.
“However, the impact to the second quarter will be material.”
Coca-Cola’s sales have already plunged by a quarter in the very first month of the second quarter. However, with the number of people filing for unemployment benefits in the US — one of Coca-Cola’s main markets — rising and presently stood at 22 million this month and lockdown still much in place in most countries, the company may record its worse performance in 57 years in this second quarter.
