Coronavirus to ding Coca-Cola's China business
The soft-drink maker expects a 1-2 cent earnings hit
Coca-Cola warned the coronavirus outbreak will disrupt business in China, its third-largest market by sales volume, but have a minimal impact on its full-year results.
The Atlanta-based soft-drink maker expects first-quarter sales volume to slump 2 to 3 percentage points, leading to a 1 to 2 percentage-point hit to sales. First-quarter earnings per share are anticipated to see a 1 to 2 cent impact.
CORONAVIRUS OUTBREAK THREATENS STOCK MARKET'S IMMUNITY
However, Coca-Cola expects its full-year results to be insulated from the outbreak. The company reaffirmed its full-year guidance of 5 percent organic sales growth and earnings of approximately $2.25 a share.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KO | THE COCA-COLA CO. | 61.55 | +0.91 | +1.49% |
“The situation with COVID-19 – or coronavirus – continues to evolve, and the company expects to provide more information during its next earnings call in April,” the company said in a press release.
The company says it has implemented a number of precautionary measures to protect employees in China, including providing face masks and hand sanitizers, temperature screening and installing health-monitoring mechanisms.
Coca-Cola Chairman and CEO James Quincey and CFO John Murphy are scheduled to present at the Consumer Analyst Group of New York Conference at 10 a.m. ET.
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Coca-Cola shares have gained 7.9 percent this year, outperforming the S&P 500’s 4.4 percent gain.