Beverages pioneer Coca-Cola Amatil Limited reported increased statutory net profit after tax for the first half year ending 30 June 2018 to $158.1 million, showing an improvement of 12.8% on previous corresponding period. However, underlying NPAT was $178.8 million, down 5.9%.
While earnings performance was in line with company’s target to accelerate the reinvestment of cost savings in 2018, underlying EBIT plunged 4.9% to $297.5 million and underlying EPS declined by 1.6%.
Mixed performance has been observed among the different segments of the group, where underlying EBIT of Australian beverages declined by 3.6%, Alcohol and Coffee marked a significant growth of 4.7% over the past 6 months. The group has shown positive signs in Australian Beverages with revenue growth and improved volume trajectory mainly driven by transition to Coca-Cola ‘No Sugar.’
Putting across an excellent performance in New Zealand and Fiji, the group posted statutory EBIT growth of 6.6% to $257.2 million and EPS growth of 17.8%.
The board has declared interim dividend of 21.0 cents per share for first half year of 2018 similar to 1H17, franked to 65%. This represents an underlying payout ratio of 85.0 per cent for the half year.
The group decided to bring forward approximately $40 million of reinvestment from the expected cost savings in 2019 and 2020.
Investors gave a thumps up to first half year results of the company as CCL share price surged 3.571% to $9.860 on Wednesday, 22 August 2018.
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