Coca-Cola (NYSE:KO) said Wednesday the coronavirus pandemic is still hurting its sales, but cost-cutting efforts helped it top analysts’ earnings estimates.
The company also released its first forecast since the crisis hit its business. Analysts appear to be more optimistic than the soft-drink company about the speed of its recovery.
The beverage giant reported fourth-quarter net income of $1.46 billion, or 34 cents per share, down from $2.04 billion, or 47 cents per share, a year earlier.
In response to the pandemic, Coke has accelerated its workforce restructuring and slimmed down its portfolio. The company recorded a $15 million charge related to these efforts and a $4 million benefit from discontinuing its Odwalla brand.
About 11% of Coke’s global jobs have been cut, excluding its bottling investments and global ventures segments. Coke expects to spend $350 million to $550 million on severance.
Excluding restructuring charges and other items, Coke earned 47 cents per share, topping the 42 cents per share expected by analysts.
Net sales dropped 5% to $8.6 billion, missing expectations of $8.63 billion. Organic revenue, which doesn’t include the impact of acquisitions, divestitures or foreign currency, fell 3% in the quarter.
Unit case volume, which strips out the impact of foreign currency and pricing, shrank by 3%. All four of its beverage segments reported volume declines, and Latin America was the only geographic region to report volume growth.
The company said the resurgence of the virus around the world in December and January has put pressure on demand. So far in February, global volume has declined by mid-single digits.
KO shares bubbled up 33 cents to $50.03.
