Coca-Cola’s unit-case volume for its sparkling soft drinks fell 12% for the latest quarter. A grocery store in Hanover Township, Pa., last week.
Photo: Mark Moran/Associated PressCoca-Cola Co. KO -1.50% said its sales fell 28% for the latest quarter as fewer of its products were sold at bars and restaurants—many of which were still shut due to the Covid-19 pandemic.
The beverage giant on Tuesday posted second-quarter sales of $7.15 billion, down from $10 billion a year earlier. Analysts polled by FactSet were targeting sales of $7.21 billion. Organic revenue, which excludes the effects of currency swings, acquisitions and divestitures, fell 26%.
About half of Coca-Cola’s business comes from restaurants, bars, movie theaters and sports stadiums world-wide, many of which were shut during the quarter. The company said it saw an improvement in its sales as lockdowns eased, and it expects the trend to continue for the rest of the year.
Some U.S. states recently saw a resurgence in Covid-19 cases, though new cases rose by their smallest daily increase in a week as parts of the country took steps to curb the pathogen’s spread.
For the quarter ended June 26, Coca-Cola recorded earnings of $1.78 billion, or 41 cents a share, down from $2.61 billion, or 61 cents a share, in the comparable quarter last year.
Adjusted earnings were 42 cents a share, ahead of the 40 cents a share analysts had expected.
The company’s unit-case volume, or the number of 24 8-ounce servings of finished beverages sold, fell 16% for the quarter. The metric was down mid-single digits globally so far this month but is better than the roughly 10% decline in June and 25% in April, the company said.
Unit-case volume for its sparkling soft drinks, which include its namesake soda drink, Diet Coke, Fanta and Sprite, fell 12% for the quarter, led by a decline in India, Western Europe and the fountain business in North America. Unit-case volume for its namesake drink declined 7%, while that of Coca-Cola Zero Sugar fell 4%. Juice, dairy, water, tea and coffee sales also dropped.
In Asia Pacific, unit-case volume fell 18% due to strict lockdowns in India, though sales in China helped offset the decline. The metric dropped 17% in the Europe, Middle East and Africa region.
The company earlier this month said it was discontinuing its Odwalla juice business and a refrigerated trucking network that delivered fresh drinks to stores as consumer-goods companies narrowed their focus during the pandemic.
Coca-Cola said it has paused social-media activity for July to review its policy amid a national reckoning over racial justice after the killing of George Floyd. The company said it has committed to spend an incremental $500 million with Black-owned suppliers over the next five years in the U.S.
Write to Dave Sebastian at dave.sebastian@wsj.com
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