Coca-Cola is starting to get some of its fizz back. The beverage giant said Tuesday demand for its sodas was improving even as the company suffered a 28% plunge in quarterly sales.
As the lockdowns eased, a key indicator of demand - unit case volume trends - improved from a drop of 25% in April to a roughly 10% decline in June. The company benefits greatly from the reopening of businesses because it gets a big chunk of its revenues from soft drinks and concentrates it sells to restaurants and theater operators such as McDonald's and AMC Entertainment.
Coca-Cola said it expects the improvement in its away-from-home sales to continue as lockdowns further ease in the second half of this year.
But it called its past quarter one of its "most challenging."
Investors chose to look ahead at the improving sales environment, driving Coke shares higher in early trading Tuesday.