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Coca-Cola Co. sales have decreased by 25% since early April due to the pandemic. The company warned that users will not open their portfolios as soon as the restrictive measures are removed, The Wall Street Journal writes.
“We may be nearing the end of a major global economic shutdown, but we are still far from normal,” said CEO James Quincy. In China, where factories are operating and employees have returned to Shanghai offices, there are still restrictions on mass meetings and consumption is less than last year. Other places, like Tokyo, introduce a second round of restrictions.
Approximately half of Coca-Cola’s business comes from the sale of places that are now closed: restaurants, bars, cinemas and sports stadiums. The company also reported a drop in store sales. And expect the most serious hit to revenue in the second quarter. Quincy also predicts that consumers will increasingly look at purchase prices.
Coca-Cola cut marketing and capital expenses and laid off part of its employees in June. The giant is also stopping some smaller projects in its area of activity.
For the quarter through the end of March, the company reported a 1% decrease in revenue to $ 8.6 billion. Organic revenue, which excludes the effects of exchange rates, acquisitions, and sales, remains unchanged.
Profits for the period were $ 2.76 billion, up from $ 1.68 billion last year.
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