Coca-Cola's profit is expected to decline because of the coronavirus epidemic

A Coke announced that its operating and financial results in the first quarter of this year should be affected by the coronavirus outbreak. It is important to mention that the Chinese market is the company's third largest consumer in terms of unit volume. According to the company, the forecast effect of the epidemic is US$ 0.01 to US$ 0.02 on earnings per share.

Even so, the company's estimate for its adjusted earnings for 2020 is US$ 2.25 per share. With regard to the unit volume sold, it is expected to be impacted by approximately 2 to 3 points. The effect on organic revenue, in turn, should be 1 to 2 points in the first quarter of the year. Want to know more information about estimating Coca-Cola's profit? Then keep reading this article!

More information on Coca-Cola's performance in times of coronavirus

Even with the impact of the coronavirus, Coca-Cola still expects its goals for this year to be met. In April, new details on the company's performance will be released.

Meanwhile, the company has taken certain precautions regarding its employees in China. She has been taking some protective measures so they don't get infected, such as providing face masks and hand sanitizers. In addition, the company has also been concerned with screening the temperature of its factories and offices, in addition to monitoring the health of its employees.

It is worth mentioning that, this morning, the government of the Asian country once again changed the way of diagnosing the new coronavirus. Thus, the death toll from Covid-19 changed to 2,236, with an increase of 118 cases. The number of infected people increased to 75,465, with an increase of 889 victims.

Final considerations

Having said that, we at Notícia Informe hope to have clarified why the coronavirus outbreak could affect the company's profit. Coke. Comment what you thought of the company's forecast. Also, say if you believe that this epidemic will still bring harm to the market in general. We are curious to know your opinion.

Finally, be sure to follow our website to learn more about the economy in Brazil and also in other countries around the world. We'll keep you up to date not only on how the Coke, but on other equally relevant subjects.

Source: G1