Vending

Coca-Cola Consolidated reports 6.4% revenue gain, boosted by COVID-19 demand

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May 6, 2020

Coca-Cola Consolidated, Inc. reported a 6.4% revenue gain in the first quarter of 2020, primarily due to an increase in physical case volume of 6.1%, according to a press release. Volume growth was strong in both sparkling and still categories as the company introduced Coca-Cola line extensions and new products such as Coke Energy, AHA and enhanced waters.

Volume growth was particularly strong in the last three weeks of the quarter as consumers prepared for COVID-19-related stay-at-home orders which shifted consumer buying patterns to take home multi-serve packages sold in larger retail stores. The company estimated approximately two-thirds of its first quarter 2020 volume growth is attributable to heavy increases in demand during the last three weeks of March.

Revenue from bottle/can sparkling beverages increased 6.0% in the first quarter of 2020, driven primarily by volume growth and price realization within this category.

Revenue from still beverages grew 10.4% in the first quarter of 2020, related to the successful introduction of AHA, Coke Energy and continued strong BodyArmor performance.

Gross profit increased $16.0 million, or 4.1%, in the first quarter of 2020, driven by higher volumes, while gross margin decreased 70 basis points to 34.6% due to the shift in product mix away from single-serve sales and towards take home multi-serve sales. On an adjusted basis, gross profit grew $22.1 million, or 5.7%, and gross margin decreased 20 basis points. 

Net income in the first quarter of 2020 was $14.7 million, compared to a net loss of $6.8 million in the first quarter of 2019, an improvement of $21.5 million.

For an update on how the coronavirus pandemic is affecting convenience services, click here.