Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Haha, Take it easy. Let us all WIN!
Last year, Coca-Cola (KO) stock was affected by the coronavirus onset that significantly disrupted the supply chain. Now Coca-Cola Beverages Africa is preparing to go for an IPO.
Coca-Cola Co (NYSE: KO) stock jumped approximately 1.17% during Monday’s pre-market to trade around $54.31. The spike was directly attributed to the just-released fiscal first-quarter earnings results that beat analysts’ expectations. Notably, Coca-Cola recorded a revenue of $9.02 billion versus $8.6 billion expectations during the past three months. Besides, the company reported adjusted earnings per share of 55 cents versus 50 cents expected by analysts.
“We are encouraged by improvements in our business, especially in markets where vaccine availability is increasing and economies are opening up, and we remain confident in our full-year guidance,” Coca-Cola CEO James Quincey said in a statement.
Coca-Cola Beverages Africa IPO
The spike in Coca-cola’s stock on Monday could also have been attributed to news that the company intends to sell a portion of its shareholding in Coca-Cola Beverages Africa (CCBA) via an initial public offering. Although the exact date for the initial public offering has not been set, the computer noted that it will schedule the IPO within the next 18 months. As a result, both entities will operate independently after the IPO, thus capable of focusing on particular markets.
“The Coca-Cola Company sees Africa as a key growth market and views a separate listing of CCBA as an opportunity to deliver a broad, supportive, long-term investor base for the ongoing development of the business,” said Bruno Pietracci, president of the Africa operating unit of The Coca-Cola Company.
“A standalone listing for CCBA will enable the bottler to build on its growth trajectory and access capital independently to meet the investment needs of the business, which is great for stakeholders across Africa,” said Jacques Vermeulen, CEO of CCBA.
Coca-Cola (KO) Stock and Market Outlook
Coca-Cola (KO) stock was affected by the coronavirus onset that significantly disrupted the supply chain. However, they managed to add approximately 15% last year according to market data provided by MarketWatch.
Notably, KO stocks are down approximately 2.12% year-to-date but have added around 10% in the past three months.
During the earnings report, the company noted that its global sale returned to pre-covid levels despite the data from North America and Western Europe remaining unchanged from last year. Demand for Coca-Сola beverages dropped in most places during the past three months.
For instance, the coffee business declined by 21%, Dasani and Smartwater, reported volume declines of 12%, and the tea products fell by 6%.
The company anticipates the demand to rise in the coming months as governments roll out covid vaccines and reopens their respective economies. With a market capitalization of approximately $229.82 billion, Coca-Сola stock received an average of Over rating from 26 ratings according to a survey conducted by MarketWatch.