Coca-Cola CEO James Quincey said the company’s business will likely not fully recover from the coronavirus pandemic until a vaccine or other comprehensive solution is available.
“Businesses are still struggling to recover to pre-Covid levels, even in places where there is no actual transmission of the virus and the vast majority of locations are allowed to open,” Quincey said Tuesday in “Squawk on the Street” of CNBC. “We are not back to those levels yet, even where it has been most under control.”
Countries like New Zealand and Thailand have contained Covid-19, while the United States and others have seen cases again. The latest increase has led many states and countries to re-impose restrictions on bars, cinemas and restaurants in the interior, which represents a serious blow to the Coca-Cola business.
The company generally makes about half of its income from sales outside the home. During its second quarter, revenue fell 28% to $ 7.2 billion, marking its largest quarterly decline in revenue in more than 30 years.
The unit case volume, which helps measure growth without the impact of price and currency changes, showed signs of sequential improvement as global blockades are reduced. After dropping 25% in April, unit case volume fell just 10% in June. So far in July, the volume has fallen to half a digit.
Coca-Cola shares rose nearly 3% in the midday trade. The stock, which has a market value of $ 203 billion, has fallen 14% so far this year.
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