Coronavirus outbreak to hurt Coca-Cola’s first quarter results

USA | The Coca-Cola Company has reaffirmed its full year guidance, despite an expected impact from COVID-19 on its first quarter 2020 results.

The company reported on 21 February 2020 that the coronavirus will hurt volume sales by 2 to 3 percentage points, organic revenue by 1 to 2 percentage points and earnings per share by 1 to 2 cents in the first quarter. Based on its latest forecast, the company still expects to achieve its previously provided full year guidance.

Initially, the firm had anticipated organic revenue growth of 5 percent in 2020.

“These updates are based on current estimates”, Coke said. “The situation with COVID-19 – or coronavirus – continues to evolve, and the company expects to provide more information during its next earnings call in April.”

China is Coke’s third largest market based on volume sales. It contributes nearly 10 percent to its global volume.