Coca-Cola reports a net profit of £1.33 billion for the third quarter of the financial year.
The US company reports revenues of £6.61 billion and 42.02 pence adjusted EPS.
The beverage company waived future guidance due to COVID-19.
The Coca-Cola Company (NYSE: KO) on Thursday released its financial results for the third quarter of the fiscal year, which were stronger than analysts expected. In the previous quarter (Q2), Coca-Cola had reported a 33% decline in profits.
The company’s shares rose by 2.5% in Thursday’s pre-trade trading, but lost more than 1% when the market opened. Including the price action, Coca-Cola now trades hands at 38.61 pounds sterling per share. By comparison, the company had a higher share price of £42 per share in early 2020.
Coca-Cola financial results for the third quarter compared to analysts’ estimates
Coca-Cola reported net income for the third quarter of £1.33 billion, or 30.56 pence per share. For the same quarter last year, net profit was higher at £1.98 billion or 45.84 pence per share.
On an adjusted basis, the Beverage Company earned 42.02 pence per share, while the FactSet forecast a lower amount of 35.14 pence per share.
In terms of third quarter revenue, the US company posted £6.61 billion, compared to £7.27 billion in the same quarter last year. However, its revenue was better than the FactSet consensus of £6.39 billion.
Coca-Cola said its revenues were still under pressure due to the coronavirus pandemic, which has significantly reduced sales at sporting events, cinemas and other off-site events. To date, the COVID 19 crisis has infected more than 8.5 million people in the United States and killed over 225,000.
The American multinational admitted the uncertainty of COVID-19, as it refrained from providing detailed guidelines for the future.
The Atlanta-based company is currently in a restructuring phase in which half of the current brands are to be removed from its portfolio. In an earlier announcement, Coca-Cola had already announced plans to discontinue tab diet soda and Odwalla juices.
Remarks by CEO James Quincey on Thursday
Coca-Cola CEO James Quincey commented on Thursday’s financial report, saying
“Throughout this year’s crisis, our system has continued to focus on its ‘drinks for life’ strategy. We are accelerating the transformation we have already begun and are shaping our company so that it recovers faster than the general economic recovery. Although there are still many challenges ahead, our progress in the quarter makes me confident that we are on the right track”.
Coca-Cola performed quite well on the stock market last year with an annual profit of just under 20%. At the time of writing this article, the US multinational beverage company is estimated at £166 billion and has a price-earnings ratio of 23.78.