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Coca-Cola reaffirms full year guidance, notes impact of coronavirus

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March 23, 2020

The Coca-Cola Company has reaffirmed its full year guidance, and estimated an approximate 2- to 3-point impact to unit case volume, 1- to 2-point impact to organic revenue and 1- to 2-penny impact to earnings per share for the first quarter due to the coronavirus epidemic, according to a press release. 

The situation with COVID-19 continues to evolve, and the company said it expects to provide more information during its next earnings call in April.

China ranks as the third-largest market in the world for The Coca-Cola Company in terms of unit case volume, the press release said. The company sees great opportunities in this important market and will continue to invest for long-term growth.

The company expects to deliver approximately 5% growth in organic revenues and approximately 8% growth in comparable currency neutral operating income, according to a previous press release.

For comparable net revenues, the company expects a slight tailwind from acquisitions, divestitures and structural items and a 0% to 1% currency headwind, based on the current rates and including the impact of hedged positions.

For comparable operating income, the company expects an immaterial impact from acquisitions, divestitures and structural items and a 2% to 3% currency headwind based on the current rates and including the impact of hedged positions.

Given the above considerations, the company expects to deliver comparable EPS of approximately $2.25 versus $2.11 in 2019, a 7% increase.

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