Coca-Cola doesn’t expect to achieve 2020 financial targets, cites ‘material’ impact of COVID-19 pandemic
Coca-Cola Co. disclosed Friday that it does not expect to achieve its previously provided financial guidance for 2020, as the negative impact of the COVID-19 pandemic nas significantly increased, which includes a sharp rally in the U.S. dollar. On Jan. 30, the beverage giant had said it expected 2020 adjusted earnings per share of $2.25, organic revenue growth of 5% and free cash flow of about $8 billion. “Due to the speed with which the COVID-19 situation is developing, there is uncertainty around its ultimate impact; therefore, the negative impact on our financial and operating results cannot be reasonably estimated at this time, but the impact could be material,” the company said in an 8-K filing with the Securities and Exchange Commission. The company said it does not foresee any near-term disruptions in concentrate or beverage base production as a result of the pandemic. The stock, which rose 2.5% in premarket trading, has lost 30.0% over the past month through Thursday, while the SPDR Consumer Staples Select Sector ETF has declined 16.5% and the Dow Jones Industrial Average has dropped 31.3%.
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