Coca-ColaJohn Murphy, chief financial officer, said on Wednesday that the company would rely on its epidemic-tested strategy to focus on larger brands and increase investment in the supply chain to cope with the potential impact of novel coronavirus's Delta variant.
The reopening of the global economy helped the beverage giant exceed expectations for the second quarter, raising its full-year guidance.
Murphy said sales in some Asian markets were hit by the rebound in the epidemic in the second quarter. Some possible effects have also been added to the revised sales forecast.
"when there are more restrictions on the market, you focus on bigger brands," says Murphy.
Coca-Cola has streamlined its product range over the past year to mitigate the impact of the epidemic. The company, which owns brands such as Sprite, Fanta and Dassani, has stopped TaB Diet soda and Coca-Cola Energy brands in the United States and sold its ZICO coconut water brand.
Coca-Cola is particularly vulnerable to the closure of theatres, restaurants and stadiums, unlike rival PepsiThat depends more on groceries and retail channels.
Nelson, senior equity analyst at CFRA Research, said:
If we re-close venues or re-impose capacity restrictions, Coca-Cola's sales will be affected.
Coca-Cola's adjusted total revenue rose 41.1% to $10.13 billion in the second quarter, exceeding expectations of $9.32 billion, according to Refinitv's IBES data.
The company raised its annual organic revenue target to 12% to 14% from its previous forecast of high single-digit growth. Annual adjusted earnings per share are expected to grow by 13% to 15%.
Adjusted earnings per share were 68 cents, exceeding expectations of 56 cents.