When contacted, Coca-Cola India spokesperson said the drop in the profit was on account of marketing expenditures.
Talking about current fiscal, Coca-Cola India said that as the coronavirus pandemic continues to evolve, there is uncertainty around its ultimate impact. (Reuters file photo)
Beverages major Coca-Cola India witnessed around 2 per cent fall in its consolidated net profit to Rs 619.43 crore for the financial year 2019-20, according to data provided by business intelligence platform Tofler. The company had posted a net profit of Rs 632.26 crore in 2018-19, Tofler said. However, its total income was up 18.16 per cent to Rs 2,812.07 crore during 2019-20, the platform said. The firm had reported a total income of Rs 2,379.78 crore in 2018-19. Coca-Cola India’s revenue from operations rose 2,741.54 crore in 2019-20, up 18.63 per cent during 2019-20 as compared with Rs 2,310.92 crore a year ago. While its other income had contributed Rs 70.52 crore to the financial year ended March 31, 2020.
When contacted, the company spokesperson said the drop in the profit was on account of marketing expenditures. “The marginal drop in the profit is on account of our marketing expenditures to meet its goals,” Coca-Cola India spokesperson told PTI. It has remained committed to be a locally relevant company that creates value locally. “Our performance in the last financial year was led by strong volumes across portfolio, driven by better operational execution and availability along with improved consumer demands,” he said.
While talking about the current financial year, the soft drinks major said that as the coronavirus pandemic continues to evolve, there is uncertainty around its ultimate impact. Therefore, the company’s full-year financial and operating results cannot be reasonably estimated at this time, it added.
“However, in the past few months, we have witnessed improved consumer sentiments and consumption trends,” he said. In the recently concluded Q3 investor call, The Coca-Cola Company Chairman and CEO James Quincey had also said recovery efforts in India continue and the company has seen a meaningful improvement in the face of ongoing restrictions. He had also said “local champions” such as ThumsUp in India saw growth during the September 2020 quarter.