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Coca-Cola
🇺🇸 NYSE:KO
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Mar 27, 2020

Coca-Cola Q1 2020 Earnings Report

Coca-cola's Q1 2020 results were impacted by the coronavirus pandemic, with net revenues declining by 1% and EPS growing by 65%.

Key Takeaways

Coca-Cola's first quarter results were released amidst the coronavirus pandemic, revealing a 1% decrease in net revenues to $8.6 billion. Despite these challenges, EPS grew by 65% to $0.64, and comparable EPS (non-GAAP) increased by 8% to $0.51. The company has taken steps to address the impact of the pandemic, including prioritizing employee safety, supporting communities, and adapting its business strategy to meet changing consumer needs.

Net revenues decreased by 1% to $8.6 billion.

EPS increased by 65% to $0.64.

Comparable EPS (non-GAAP) grew by 8% to $0.51.

The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages.

Total Revenue
$8.6B
Previous year: $8.02B
+7.2%
EPS
$0.51
Previous year: $0.48
+6.3%
Gross Profit
$5.23B
Previous year: $5.03B
+4.0%
Cash and Equivalents
$13.6B
Previous year: $5.85B
+131.9%
Free Cash Flow
$229M
Previous year: $400M
-42.8%
Total Assets
$94B
Previous year: $88.3B
+6.4%

Coca-Cola

Coca-Cola

Coca-Cola Revenue by Segment

Coca-Cola Revenue by Geographic Location

Forward Guidance

Due to the coronavirus pandemic, the company's full year financial and operating results cannot be reasonably estimated at this time. For comparable net revenues (non-GAAP), the company expects a mid single-digit currency headwind. For comparable operating income (non-GAAP), the company expects a high single-digit currency headwind. The company’s underlying effective tax rate (non-GAAP) is estimated to be 19.5%.

Positive Outlook

  • The company believes the pressure on the business is temporary
  • The company remains optimistic on seeing sequential improvement in the back half of 2020
  • The company is moving with speed to continue to best serve its customers and consumers
  • The company is working to ensure adequate inventory levels in key channels
  • The company is increasing investments in e-commerce to support both retailers and meal delivery services

Challenges Ahead

  • The ultimate impact on the second quarter and full year 2020 is unknown at this time
  • The impact to the second quarter will be material
  • Comparable net revenues (non-GAAP) are expected to include a 4% to 5% currency headwind
  • Comparable operating income (non-GAAP) is expected to include a 5% to 6% currency headwind
  • Since the beginning of April, the company has experienced a volume decline globally of approximately 25%

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Coca-Cola