Coca-cola's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

In 2020, economic activities around the world took place in the context of an unprecedented health crisis. This has had a major impact on the business of several companies. This is the case of the Coca-Cola group, which suffered from the containment measures that led to the closure of bars, restaurants, etc. As a result, the company recorded lower results in the quarters under review. As a result, the company recorded less interesting results in the quarters of the 2020 financial year.  

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Coca-cola's market cap, dividends, sales and earnings in 2020
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Performance in Q1 2020

The start of fiscal 2020 has not gone well for the Coca-Cola Group. In the first quarter of this year, the Group's business was impacted by the closure of restaurants and the cancellation of large-scale events during this period due to the Covid-19 pandemic.

In the first three months of the 2020 financial year, the American soft drinks giant had achieved sales of 8.60 billion dollars. This was down 1% on the same period the year before. Excluding the impact of acquisitions and divestments as well as currency fluctuations, organic sales were flat year-on-year.

In the quarter under review, sales volume decreased by approximately 25%. In Q1-2020, the company's adjusted EPS increased by 6.3% to $0.51. Adjusted gross margin was 61.6%, compared to 60.8% a year earlier. The adjusted operating margin reached 30.7% in the first quarter of 2020, an increase of nearly 250 basis points compared to Q1-2019.

 

Lower activity in Q2 2020

In the second quarter of 2020, the Coca-Cola Group continued to be negatively impacted by the health crisis. The latter led to the closure of restaurants, bars and cinemas. This logically weighed on the results recorded by the company over this period. It saw its turnover fall by 28% year-on-year to $7.15 billion in Q2-2020.

Organic revenue was down 26% year-on-year. In addition, for the second quarter of 2020 as a whole, sales were down sharply. Sales of carbonated soft drinks fell by 12%, while sales of dairy products, juices and plant-based drinks fell by 20% in the quarter.

Sales of water and sports drinks were down 24%. In Q2-2020, the US multinational's net profit was $1.78 billion, down 32% year-on-year. In addition, it considered Q2 to be the most pandemic-affected quarter in 2020.

 

Third quarter 2020 results

Despite the impact of the Covid-19 health crisis, Coca-Cola exceeded market expectations in its third quarter 2020 performance. For the period as a whole, the soda giant reported sales of $8.65 billion, down 9% year-on-year.

The market was expecting a quarterly turnover of 8.36 billion dollars. The company's profit also fell in Q3-2020. It fell 33% to $1.74 billion (or 40 cents per share). Excluding special items, EPS was 55 cents, exceeding analysts' expectations of 46 cents per share.

Compared to the previous quarter, the company's sales improved significantly in Q3-2020. This was helped by the partial re-opening of the economy during this period. In addition, Coca-Cola had adopted certain resolutions to ensure the company's recovery.

The American soft drink giant had planned to clean up its brands. It should reduce them by 50% and limit its portfolio to 200 brands. Also, the group had left the marketing of Odwalla fruit juices. It was also planning to stop production of its Zico coconut water.

 

Better than expected results in Q4-2020

In the fourth quarter of 2020, the Coca-Cola Group's business was conducted in an uncertain environment imposed by the Coronavirus pandemic. However, it estimated that its sales were resilient in the face of the health crisis.

In Q4-2020 as a whole, the Atlanta-based group reported sales of $8.61 billion, down 5% on the same period last year. However, it came in slightly ahead of market estimates, which were targeting $8.6 billion in sales for the quarter.

In the fourth quarter of 2020, the company's net income was $1.46 billion (or 34 cents per share). A year earlier, it had reached $2.04 billion (or 47 cents per share). Excluding non-recurring items, EPS was 47 cents. The market was expecting 42 cents per share.

 

Dividend and market capitalisation in 2020

The Coca-Cola Group is one of the companies that regularly pays dividends to its shareholders. The dividends paid by the company for the 2020 financial year are detailed as follows with the payment dates.

  • 0.41 per share: 15 December 2020
  •  0.41 per share: 01 October 2020
  • 0.41 per share: 01 July 2020
  • 0.41 per share: 01 April 2020.

The company is also present on the stock markets. Coca-Cola shares are listed on the New York Stock Exchange. At the end of 2020, the company's market capitalisation is estimated at $235.53 billion.

 

About Coca-Cola

Officially named The Coca-Cola Company of Atlanta, Coca-Cola is a specialist in non-alcoholic beverages. It is the world's leading producer and marketer of soft drinks.

The group is one of the most well-known and popular American companies in the world. It is known for its flagship product, Coca-Cola. The company is also present in more than 200 countries around the world.

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