Coca-Cola Consolidated is the largest independent Coca-Cola bottler in the US. Besides distributing and marketing Coca-Cola products, the company also markets brands like Dasani, Dr Pepper, Monster, and Dasani among many others. The scale and the portfolio of brands that Coca-Cola Consolidated works with make it among the best beverage stocks 2020. The pandemic has been a challenge for Coca-Cola Consolidated as retail centers, movie theatres, and event venues have been shut down for the better part of the year. Restaurants have also been subject to lockdown guidelines while people stocking Coca-Cola products at home hasn’t quite offset the loss of business from lockdowns. In the third quarter of 2020, the company seems to be recovering from a bottom as the global economy gradually opens up.
Coca-Cola Consolidated 3Q2020 Results
On 22nd October 2020, Coca-Cola Consolidated announced its third-quarter 2020 results. The sentiment was optimistic and recovery was the main theme. Company CEO James Quincey said, “From the 25% volume decline that we saw in April, the mid-single-digit declines through the summer and the low single-digit decline since September, our volume trends have continued to improve.”
Revenues for the quarter rose from $1.27 billion in Q32019 to $1.32 billion. Net income also went up significantly from $15.5 million in Q32019 to $55 million in Q32020. Sparkling bottle and can sales improved 7% year-on-year from $657 million to $703 million. Still bottle and can sales also were up 6% year-on-year from $438 million to $464 million. Fountain revenues were the only beverage segment to take a hit, falling by 35% from $55 million in the third quarter of 2019 to $36 million in the third quarter of 2020.
How Are The Best Beverage Stocks 2020 Performing?
Coca-Cola Consolidated is down 5.5% year-to-date. It currently trades at a P/E of around 29 and the most recent price closed at $266.75 on 16th November 2020. In comparison, Pepsico is up 7.3% for the year 2020 and trades at a P/E slightly below 29.
