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Coca-Cola says third-quarter revenue up by 21%

By WANG ZHUOQIONG | chinadaily.com.cn | Updated: 2020-10-22 23:55
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Coca-Cola Company on Thursday said third-quarter net revenue was $8.67 billion, a decline of 9 percent from a year earlier but a 21 percent increase from the previous quarter when revenue fell 28 percent.

The results beat market expectations.

The decline in unit sales in Asia Pacific continued to improve, from 18 percent in the second quarter to 4 percent this quarter, primarily due to the growth in soft drinks in China.

The company said it expects to see growth this year in China, even as its global sales continue to decline because the COVID-19 pandemic has closed restaurants, bars, movie theaters and sports stadiums elsewhere around the world.

Coca-Cola Chairman and CEO James Quincey said the company will continue to focus on emerging stronger from the pandemic with a portfolio of the right brands, high-impact marketing, effective innovation and a highly networked organizational structure.

"Throughout this year's crisis, our system has remained focused on its beverages for life strategy. We are accelerating our transformation that was already underway, shaping our company to recover faster than the broader economic recovery," he said.

On Aug 28, the company announced a new organizational structure, which streamlined its original 17 business units to nine.

Vamsi Mohan Thati -- who has more than 20 years' experience at Coca-Cola -- was appointed president of Coca-Cola Greater China, which is one of the nine operating units.

Among its product segments, sales of soft drinks in the quarter declined 1 percent, Coca-Cola increased 1 percent, Coca-Cola Zero Sugar grew 7 percent in the quarter and 4 percent year-to-date.

Juice, dairy and plant-based beverages declined 6 percent and water, enhanced water and sports drinks declined 11 percent. Tea and coffee declined 15 percent.

Coca-Cola said its recent strategic actions of portfolio optimization, disciplined innovation, increased marketing effectiveness and efficiency, enhanced system collaboration and evolving the organizational structure have given the company increased confidence in emerging stronger from the pandemic.

The company said it expects to offer a portfolio of about 200 master brands, about 50 percent reduction from the current number. It also is exploring new products.

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