Coca-earnings Cola’s soar when the company reopens.
Coca-Cola announced a significant increase in quarterly profits on Wednesday, citing greater sales in North America and other areas where economic activity has rebounded following the abolition of the coronavirus.
The soda giant’s second-quarter earnings benefited from the stark contrast with the year-ago period, when sales from movie theaters, live sporting events, and other away-from-home venues abruptly ceased.
“Our results in the second quarter reflect how our business is rebounding quicker than the general economic recovery,” said Coca-Cola CEO James Quincey, who added that despite the “asynchronous” nature of the recovery across markets, the company boosted its full-year estimates.
Coca-Cola attributed the increase to a “ongoing recovery in many markets, somewhat offset by the impact of a comeback of the coronavirus in other markets,” according to the company.
Sales increased by 28% in North America, as the company continued to see strong at-home sales, as well as gains from the fountain business’s comeback.
China, Brazil, and Nigeria were other strong markets.
The company’s earnings increased by 48 percent to $2.6 billion in the third quarter, thanks to a 42 percent increase in revenue to $10.1 billion.
Coca-Cola now predicts annual sales growth of 12 to 14 percent, excluding currency changes and divestitures, after previously forecasting growth in the “high” single digits.
In pre-market trade, shares increased 2.1 percent to $57.01.