Fading Virus Concerns are Good News for Coca-Cola

Soft drink maker Coca-Cola appears to be benefiting from fading uncertainties surrounding the coronavirus, especially in countries where the roll-out of vaccines is fast, and economies are reopening.

 

The company achieved more turnover in the past quarter than twelve months previously.

Coca-Cola ended the quarter with sales of over $ 9 billion. That meant an annual increase of 5 percent. Also, the company performed better in terms of sales than experts on average had expected. Every month Coca-Cola sees the situation in its end markets improve. At 2.2 billion dollars, the profit was a fifth lower than a year earlier, mainly due to one-off effects.

Coca-Cola’s soft drinks division sold 4 percent more soft drinks in the quarter. In North America, performance was still under pressure. But this was offset by better than expected sales in China, India and Latin America.

Increased demand in China and India also helped the company’s food, fruit juices, dairy and plant-based beverages segment. Here there was a volume growth of 3 percent. The problems at Coca-Cola mainly affect the sale of coffee and sports drinks. This is due, for example, to the closure of cafes and gyms.

The company reiterated its previous forecast for this year. Besides, Coca-Cola foresees a turnover growth of 7 to 9 percent. Profits, excluding one-offs, could even grow double digits.

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