The Coca-Cola Company (NYSE:KO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 21, 2020 • 08:30 am ET


The Coca-Cola Company (NYSE:KO) Q2 2020 Earnings Conference Call - Final Transcript


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At this time, I'd like to welcome everyone to The Coca-Cola Company's Second Quarter Earnings Results Conference Call. [Operator Instructions] I would now like to introduce Mr. Tim Leveridge, Vice President, Investor Relations Officer. Mr. Leveridge, you may now begin.

Timothy K. Leveridge

Good morning and thank you for joining us today. I'm here with James Quincey, our Chairman and Chief Executive Officer and John Murphy, our Chief Financial Officer.

Before we begin, I'd like to inform you that we've posted schedules under the Financial Information tab in the Investors section of our company website at These schedules reconcile certain non-GAAP financial measures which may be referred to by our senior executives during this morning's discussion to our results as reported under Generally Accepted Accounting Principles. I'd also like to note that you can find additional materials in the Investors section of our company website that provide the accompanying slides for today's discussion and an analysis of our margin structure.

In addition, this conference call may contain forward-looking statements, including statements concerning long term earnings objectives and should be considered in conjunction with cautionary statements contained in our earnings release and in the company's most recent periodic SEC report.

Following prepared remarks this morning, we'll turn the call over to your questions. We recognize there may be lots of questions, please limit yourself to one question. If you have more than one, please ask your most pressing question first and then re-enter the queue. Now let me turn the call over to James.

James Quincey

Thanks, Tim, and good morning everyone. We've just closed the books on what has arguably been the toughest and most complex quarter in Coca-Cola history. And given the global pandemic, of course, this comes as no surprise. From the initial lockdowns and closures of hundreds of thousands of our customer outlets to the gradual reopening and now another round of spikes in various countries, the impacts have been profound. In this challenging environment, we've seen some remarkable actions around the world. And I'd like to express my thanks to the countless people on the frontlines who are working to improve our communities worldwide. And I'd also like to recognize my colleagues across The Coca-Cola Company and our bottling system for their tireless efforts in prioritizing the safety of our people, ensuring the resiliency of our supply chain, supporting our millions of customers globally and for being a force of good in their communities.

As we navigated the quarter, we used a combination of focus and flexibility to manage through what we believe will be the peak levels of global lockdown. John will discuss the results in further detail, but as you think about the quarter and consider the future, I'd like to highlight the strong relationship of our performance with the intersection of two key factors. The trajectory of our business trend in the near term is closely linked to the size of our away-from-home business in any given country and the level of lockdowns in the market. For example,