Coca-Cola’s sales went down in the primary quarter as it reorganized its business. The company, which is currently the largest beverage maker in the world, has revealed that it intends to slash its workforce by getting rid of roughly 1,200 jobs starting later on this year as it advances towards its goal of cutting costs.
Coca-Cola, which is the producer of companies such as Fanta, Sprite and Smartwater, has about 100,300 employees globally at the moment, according to a recent report by FactSet. This indicates that the job cuts projected by Coca-Cola will eliminate one percent of its workforce. Coca-Cola has also declared that these cuts will enable it to secure an additional $800 million in savings per annum, as well as the $3 billion it previously announced its decrease. The majority of those savings are predicted to be attained in 2018 and 2019, the company estimates.
Coca-Cola has additionally been restructuring its business by selling back its bottling and distribution operations to autonomous bottlers. This signifies that the company is shifting its focus towards the selling of concentrates to bottlers and marketing for its brands—changes contemporaneously with the formal preparation of No. 2 executive, James Quincey, to take over as the company’s CEO in the following week.
Quincey has revealed that he aims to focus on making Coca-Cola a “total beverage company,” which means that it will more avidly pursue expansion by vowing to develop and market drinks other than soda; these new drinks would serve to mirror the changing tastes in the market. The efforts have encompassed actions such as increasing the marketing focus on brands such as Smartwater, including a carbonated product of the bottled water brand.
Coca-Cola has recently divulged that, without not taking into account the consequences of refranchising, a negative effect of foreign currency exchanges and other structural changes, its income was stagnant.
When framing the situation on a global scale, the Atlanta-based company affirmed that its total sales volume was flat. This is likely the consequence of the one percent waning in sodas and three percent surge in the beverage category that is comprised by water, enhanced water and sports drinks. Volume escalated by two percent in the category including tea and coffee.
In North America, the total sales volume increased for Fanta, Sprite and Coke Zero; meanwhile, the volume for Diet Coke unrelenting decreased throughout the same time period.
For the first three months of the year, Coca-Cola acquired a revenue of $1.18 billion, which is equivalent to twenty-seven cents per share. Not taking into account the one-time gains and costs, the company maintains that it grossed roughly forty-three cents per share, which is a penny less than analysts anticipated, according to Zacks Investment Research.
The total revenue for Coca-Cola was $9.12 billion in this period, surpassing the analyst predictions of $8.96 billion. Shares also slightly increased in early trading on Tuesday.
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