Coca-Cola shares (NYSE: KO) has weakened from $60 below $37 in less than eight months and the current price stands around $48. The business of the company is impacted by the coronavirus Covid-19 pandemic and the next several months will be competitive for the beverage industry.
Fundamental analysis: The business of the company is impacted by the coronavirus Covid-19 pandemic
The Coca-Cola Company is an American multinational beverage corporation headquartered in Atlanta. The main business of this company is the manufacturing, retailing and marketing of nonalcoholic beverage concentrates and syrups.
The company is well known for its famous drink Coca-Cola and for the fact that it has increased dividends each year for 57 years. The business of the company is impacted by the coronavirus Covid-19 pandemic environment and business is still struggling to recover to pre-Covid levels.
Coca-Cola reported that organic revenue fell 26% in Q2 and the company lost value share in total non-alcoholic ready-to-drink beverages. Coca-Cola CEO James Quincey said that the company has not seen demand return to pre-pandemic levels, even in markets where the coronavirus is mostly under control.
According to the latest news, the company is cutting jobs and it will create new operating units focused on regional and local execution. This is a part of the overall reorganization and Coca-Cola will offer employees an option to take a voluntary separation package.
The company is still working very hard in terms of boosting revenue and it plans to bring the hard seltzer product to market under the Topo Chico brand. The company increased its revenue in 2019 to $37.26B from $34.300B in 2018 but some rumors say that the company could face problems with cash flow in the future.
