Coca-Cola, a year to forget
The Company posted full-year net revenues of $33 billion and operating income of $8.997 billion (-11%)
The Coca-Cola Company has recorded a 11% decline in net revenue for the full-year, following ‘incremental pressure’ amid the pandemic during Q4. The company posted full-year net revenues of $33 billion and operating income of $8.997 billion, representing an 11% drop since the same time last year. Coca-Cola says that while volumes broadly remained resilient particularly in at-home channels, it experienced incremental pressure in December and into the early part of this year due to a resurgence of the coronavirus in many parts of the world.
"In 2020, employees from across The Coca-Cola Company and its bottling system worked tirelessly to learn and adapt amidst a global crisis," said James Quincey, chairman and CEO of The Coca-Cola Company. "The progress we made in 2020, including the actions taken to accelerate the transformation of our company, gives us confidence in returning to growth in the year ahead. While near-term uncertainty remains, we are well-positioned to emerge stronger from the crisis, driven by our purpose and our beverages for life ambition".
The company witnessed its net revenue drop by 5% in Q4, which is less steep than previous quarters. Global unit case volume declined 3% in Q4 and 6% for the full-year, as continued strength in at-home channels was more than offset by coronavirus pressure in away-from-home channels.
Sparkling soft drinks fell 4% for the full year due to pressure in the fountain business in North America and away-from-home channels in Western Europe. This was partially offset by growth in China, Brazil and Nigeria. During 2020, Coca-Cola says it prioritised its core brands which resulted in Trademark Coca-Cola volume growing 4% for the year, led by Coca-Cola Zero Sugar.
Water, enhanced water and sports drinks declined 11% for the year, while tea and coffee fell 17%, primarily driven by coronavirus-related pressure on the company’s Costa retail stores. Coca-Cola’s global ventures unit saw its revenue decline by 22% due to Covid-19 pressure on Costa retail stores; nevertheless, Costa Express machines in the UK performed well. For the full-year, Europe, Middle East & Africa net revenues fell 14%, Latin America declined 15%, North America 4%, Asia Pacific 11% and bottling investments 16%.
EFA News - European Food Agency