Unit case volume declined 36 per cent driven by India and South Africa due to the impact of the coronavirus, said CocaCola
New Delhi: Global soft drink major Coca-Cola Company on Tuesday reported a 16 per cent decline in its unit case volume for the second quarter dragged by markets such as India and Western Europe.
The Atlanta-headquartered company has reported a 28 per cent drop in its net revenues to USD 7.2 billion and its operating income declined by 34 per cent.
Sparkling soft drinks declined 12 per cent, led by a decline in India, Western Europe and the fountain business in North America due to pressure in away-from-home channels, said CocaCola in an earning statement.
India, which is the fifth-largest market for CocaCola global, had gone through lockdown imposed by the authorities and disrupted the supply chain in the April-June quarter.
In the Asia Pacific region, CocaCola has witnessed a decline of 18 per cent in volumes during the quarter and this was primarily due to strict lockdowns in India.
Unit case volume declined 18 per cent, primarily due to strict lockdowns in India to help prevent the spread of the coronavirus. The unit case volume decline was partially offset by positive performance in China.
The Coca-Cola Company remained agile in the second quarter, with a focus on maintaining a safe environment for employees while also providing necessary products and services to consumers during this unprecedented time.
Commenting on the performance, James Quincey, chairman and CEO of The Coca-Cola Company said: "We believe the second quarter will prove to be the most challenging of the year; however, we still have work to do as we drive our pursuit of ''Beverages for Life'' and meet evolving consumer needs."
CocaCola has also reported a decline in the performance of its Bottling Investments Group, which represents the company-owned bottling plants.
Unit case volume declined 36 per cent driven by India and South Africa due to the impact of the coronavirus, said CocaCola.
Unit case volume means the number of unit cases of company beverages directly or indirectly sold by the company and its bottling partners to customers.