Coca-Cola net income drops to US$2.2b

Sales are steadily improving at Coca-Cola Co. as vaccinations allow for the opening of stadiums, restaurants and theaters in many regions globally.

Coke historically had booked half its sales from restaurants, stadiums and other public places. The pandemic broadsided the company.

As of March, case volumes had returned to 2019 levels, the beverage giant said. First quarter volume growth was particularly strong in China, which was locked down last year.

Sales rose 5% in the January-March period this year, the Atlanta company said Monday. But the recovery is uneven. Case volume declined in North America and Europe, where many dining rooms and other venues remain closed.

Sales of soft drinks were fueled by new products like Coca-Cola Zero Sugar. Sales of juice and milk also rose. But bottled water sales declined globally. Coffee sales dropped by 21 percent as many of the company’s Costa retail stores remained closed.

Net income dropped by 19 percent to US$2.2 billion in the first quarter. Excluding one-time items, the company earned 55 US cents per share. That exceeded Wall Street’s forecast of 50 US cents, according to analysts polled by FactSet.

Coke’s revenue grew by  5 percent to US$9 billion, ahead of the US$8.6 billion analysts had forecast.