Coca-Cola (KO) Reports 2020 Q4 Results Above Expectations

Coca-Cola Co (NYSE:KO)’s history dates back to 1886 when pharmacist John Pemberton made Coca Cola syrup in his backyard. Over the years, its flagship drink became increasingly popular around the world, mainly due to aggressive advertisement and unique taste. Today, Coca-Cola enjoys a major share in the global soft drink market.

The Atlanta, Georgia-based multinational beverage giant on Wednesday announced its financial results for the fourth quarter that beat expectations. Coca-Cola reported earnings of $1.46 billion, or 34 cents per share for the three months ended Dec 31, down from 47 cents per share in the comparable period of 2019. However, the adjusted profit of 47 cents per share easily surpassed analysts’ average estimate of 42 cents per share.

Revenue came in at $8.61 billion, down 5 percent from the year-ago quarter, but above the consensus forecast of $8.60 billion. The company’s revenue declined in all geographical regions mainly due to the disruptions caused by the Covid-19 pandemic. Latin America revenue declined 14 percent, while North America revenue slipped 1 percent during the quarter.

Looking forward, Coca-Cola expects its adjusted profit to grow between the high-single and low-double digits percentage range in 2021. Moreover, it projected organic revenue growth in the high-single digits for the current fiscal year.

Speaking on the results, CEO James Quincey said in a statement, “The progress we made in 2020, including the actions taken to accelerate the transformation of our company, gives us confidence in returning to growth in the year ahead. While near-term uncertainty remains, we are well-positioned to emerge stronger from the crisis, driven by our purpose and our beverages for life ambition.”

Coca-Cola shares rose nearly 2 percent on Thursday following the results. The stock hasn’t completely regained the value it lost in 2020 due to the pandemic. Its share price has dropped nearly 15 percent over the last year.