Decline in sales volume and revenue due to weak vending channels

「Revenue was ¥186,432 million, down ¥3,228 million, or 1.7%, from the same period of the previous year. Segment profit increased by ¥6,732 million from the same period of the previous year to ¥5,343 million, compared with a loss of ¥1,389 million in the previous year.」

「This was due to a revaluation of fixed assets in the vending business during the second quarter (1 April to 30 June) to achieve optimal capital allocation in the future, resulting in the recognition of a non-cash impairment loss. Other expenses (non-recurring) include an impairment loss of ¥88,939 million, primarily attributable to the impairment in the vending business described above.」

「In the vending channel, although the share base built to date and effective campaigns through the Coke ON smartphone app helped expand share, the impact of poor summer weather and the volume decline in canned and bottle-canned products resulting from price revisions led to a 1% decrease in sales volume.」

「In the vending channel, price revisions improved the net selling price per case. Meanwhile, volume remained broadly in line with the same period of the previous year, despite the volume decline resulting from the price revisions, as measures to capture demand through digital initiatives, including campaigns on the Coke ON smartphone app and the expanded rollout of QR de 決済, in addition to the share base built to date, proved effective.」

「In the vending channel, although operations were affected by poor weather in March, measures to capture demand through digital initiatives, including campaigns on the Coke ON smartphone app and the expanded rollout of QR de 決済, in addition to the share base built to date, proved effective, resulting in a 1% increase in sales volume.」

「Although vending was affected by lower volume following price revisions for small PET-bottle and canned products, the share base built to date and Coke ON campaigns helped capture rising demand driven by hot weather and recovering foot traffic, resulting in a 1% increase in sales volume.」

「Although vending was affected by lower volume following price revisions for small PET-bottle and canned products, the share base built to date and campaigns on the Coke ON smartphone app helped capture rising demand as foot traffic recovered, leaving sales volume broadly flat year on year.」

「In the vending channel, although volume was affected by the decline resulting from price revisions, the share base built to date and campaigns through the Coke ON smartphone app helped capture demand, which increased as foot traffic recovered, resulting in a 1% increase in volume.」

「Vending continued to deliver steady growth by capturing the opportunities from recovering foot traffic and favorable weather, supported by the share base built to date. A stronger product assortment, increased vending machine installations and campaigns through the Coke ON smartphone app, which reached 40 million downloads, contributed to an 8% increase in volume in the third quarter and a 5% increase on a cumulative basis.」

「Vending sales volume grew 3% as the recovery in foot traffic and favorable weather provided tailwinds, while initiatives such as strengthening the product assortment, including new products, and conducting campaigns through the Coke ON smartphone app proved effective.」

「Vending grew 3% through initiatives including increasing sales volume per vending machine through a stronger product assortment, including new products, and campaigns through the Coke ON smartphone app, as well as renewed installation of vending machines at prime locations after assessing cost effectiveness, amid a certain recovery in foot traffic. Vending value share continued to grow for 36 consecutive months.」

「Despite the lingering effects of foot-traffic trends and weather, vending sales volume increased 1% in the cumulative third quarter. Although difficult market conditions continued, new products, mainly unsweetened tea and water, contributed, and vending value share continued to grow for 30 consecutive months.」

「Vending sales volume increased 18% in the second quarter, partly due to the recovery in consumer traffic in April, when the state of emergency had been lifted, and increased 2% in the first half.」

「Although signs of recovery had begun to emerge in outdoor locations at the end of the previous period, consumer traffic declined following the declaration of a state of emergency. Conditions were particularly challenging at some indoor locations, including stations, schools and entertainment facilities in major metropolitan areas, and vending sales volume declined 12%.」

「Beverages business sales volume (million cases) 384 344 down 11%」

「Beverages-business sales volume declined 18% in the second quarter and 11% in the first half. “Lemondo” performed well, ahead of plan.」

「Beverages-business sales volume tracked the plan from January through February, supported by growth in the vending channel and the contribution of the alcoholic beverage “Lemondo,” but declined sharply in March due to the spread of COVID-19 and other factors, as well as a shift in the channel mix, resulting in a 2% year-on-year decline in the first quarter.」

「Although vending sales volume decreased 7% in fiscal 2018, the downtrend showed signs of improvement.」

「In the beverages business, business profit was ¥17,939 million, down ¥17,198 million, or 49%, year on year, due to a review of the supply system following damage from the heavy rains in July 2018, supply constraints caused by a sharp increase in demand for new aseptic products, and the continued deterioration of the channel and package mix due to lower sales volume in the vending channel.」

「Consolidated revenue for the first quarter was ¥213,828 million, up ¥114,686 million, or 116%, year on year. In the beverages business, revenue was ¥206,588 million, up ¥114,943 million, or 125%, year on year, primarily due to the impact of the management integration of Coca-Cola West Co., Ltd. and Coca-Cola East Japan Co., Ltd., effective 1 April 2017.」

「Due to weak performance in the vending channel and profit improvement initiatives focused on small-package products, sales volume declined slightly year on year, while revenue decreased by ¥21.14 billion from the previous consolidated fiscal year to ¥991.563 billion, down 2.1% year on year.」