NEW YORK: The resurgence of the coronavirus again weighed on Coca-Cola’s quarterly results released Wednesday as the beverage giant expressed confidence it would prevail in a potentially costly US tax dispute.
Coca-Cola suffered an “incremental” sales hit in December and through early February due to rising Covid-19 cases in key markets. However, the company managed to report better-than-expected profits due to cost-cutting measures that included a restructuring that will trim 2,200 jobs worldwide.
Coca-Cola has also reduced spending on marketing during the pandemic, executives said.
Coca-Cola reported that fourth quarter profits fell 29 percent to $1.4 billion on a five percent decline in revenues to $8.6 billion.
The company projected full-year revenue growth of “high single digits” in 2021, excluding foreign exchange and acquisition effects.
Coca-Cola set aside tax reserves of $438 million in 2020 connected to six-year-old litigation.
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