The latest results from Coca-Cola and J.M. Smucker show why it’s better right now to be in pantries than in restaurants.
Coca-Cola reported that its global sales volume plunged 25% in April, due primarily to the interruption in sales to restaurants, theaters, concerts and other events caused by the coronavirus. “There has been temporary but profound pressure on our customers and our business,” Chairman and CEO James Quincey said Tuesday.
There was a slight increase in home sales, but it wasn’t nearly enough to offset the drop in fountain and bottled sales in venues where people are no longer congregating.
Results for Coca-Cola’s first quarter, which mostly don’t include the coronavirus disruption, were strong, with net income up 65%, to $2.8 billion. But Coca-Cola has already given notice that earlier projections for the fiscal year should be disregarded.
Conversely, J.M. Smucker has reported that its guidance for fiscal 2021 should be disregarded because it will probably do better than expected, due to increased demand by consumers who are spending most of their time at home.
“Unprecedented customer and consumer demand in the company's fourth quarter has improved its fiscal year financial expectations,” the company said in a statement.
Smucker still expects net sales for fiscal 2020 to be down from 2019, but only by 1%, compared with its previous estimate of 3%.
